G4S rejects clone Gardaworld bid as takeover pursuit goes on
G4S has rejected another takeover bid from Gardaworld, once again saying that the £3bn offered “significantly undervalues” the company.
This morning, the Canadian firm submitted a fourth bid for the outsourcer at an offer price of 190p per share, the same price that was tabled at the end of August.
In a statement, G4S chairman John Connolly said that the board had unanimously rejected the bid.
“The unsolicited 190p offer launched today by Gardaworld is unchanged from the proposal that has already been carefully considered and unanimously rejected by the G4S board as significantly undervaluing the company and its prospects”, he said.
“Since rejecting Gardaworld’s last proposal, G4S has announced continuing resilience in its trading with underlying earnings ahead of the prior year for the first eight months of 2020.”
The board added that the bid was “highly opportunistic” and was not in the best interests of its shareholders.
Shares in the firm jumped 5.8 per cent in the immediate aftermath of the announcement, taking its stock price to 200p.
Gardaworld’s relentless pursuit of G4S has seen it have two offers rejected already. In June, it first bid at 145p per share and then followed up with an improved 153p per share offer.
Gardaworld is the largest privately owned security services firm in the world, and employs more than 102,000 people globally.
The firm, which is 51 per cent owned by private equity fund BC Partners, has repeatedly urged G4S shareholders to ask the board to enter into negotiations over a potential deal.
When the last bid was rejected, chief exec Stephen Cretier said: “needs an owner not a manager. GardaWorld has 25 years of experience in the sector and we know how to improve and repurpose this business.”
“As owner-operators, we believe that the combined business’s operations will offer a better future for all those who depend on G4S. We will turn G4S around, ensuring it delivers for its customers, its people and the public.”