Nov 16, 2020

G4S steps up defence against takeover with praise for cash business

Security group G4S sought to shore up its defence against a £3bn hostile takeover bid from GardaWorld, its Canadian peer, arguing its cash management business was comparable in value to a financial technology company. On Monday, G4S set out the virtues of the "Market-leading and extremely valuable" retail cash solutions business, which automates cash till floats and processing for 11,450 retailers throughout the US, including Walmart. "The board of G4S believes that RCS represents exceptional unrecognised value within G4S. RCS is revolutionising global cash management with the potential to generate significant returns for G4S shareholders," the company said. The retail cash solutions business accounts for just 3 per cent of global revenues at G4S, which earns more than fourth fifths of its income from its business providing uniformed security guards at corporate offices, sports and music events in 80 countries. G4S has £7bn sales a year versus its Canadian rival's £1.5bn. Allied Universal, a third security company, which has £5.8bn sales, has indicated it may make a higher bid of "At least" 210p per share but has until December 9 to table a formal offer and may face competition issues.

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