The board of security firm G4S (G4S) has thrown its support behind the £3.8 billion, 245p per share, takeover deal offered by US company Allied Universal after rival Canadian bidder GardaWorld refused yesterday to up its 235p per share deal.
The offer from Allied Universal represented a premium of around 68% to G4S’s closing price of 146p before the takeover excitement emerged.
‘Allied Universal’s final offer of 245p per share reflected the transformation of G4S under [CEO] Ashley Almanza and his leadership team, supported by the impressive efforts of all G4S employees,’ said G4S chairman John Connolly.
TRANSFORMED AND REFOCUSED
‘The business has been fundamentally refocused and re-positioned as a global leader to address long-term growth in security markets, with a unique market footprint and industry-leading expertise,’ he added as he explained the board’s decision to unanimously recommend the deal to shareholders.
Allied Universal and GardaWorld agreed to a sealed bid auction process to determine the fate of G4S but with both bids now final it is up to shareholders to decide. G4S shareholders have until 1pm on 16 March to accept the offer with at least 75% demonstrating their willing to do so for the deal to go through.
G4S shares stayed flat at 242.8p, indicating that the takeover is widely believed to get the backing it needs.