G4S recommends £3.8bn Allied Universal bid
The deal will create a security firm with 750,000 staff
G4S is expected to fall under the control of US firm Allied Universal Security Services after a rival pulled out of a bidding war.
The board of G4S today unanimously recommended that shareholders accept the final Allied Universal offer of 245p-per-share, valuing the business at £3.8 billion.
The offer price represents a premium of approximately 68% to the closing price of 146p per G4S share on 11 September 2020 being the last business day before commencement of the offer period.
Today’s recommendation follows a three-month bidding war with Canadian firm Garda World which decided not to increase it 235p-per-share bid. G4S shares fell 9.8%, or 26.4p, to 242.6p as the possibility of a bid battle evaporated.
Allied is backed by private equity firm Warburg Pincus and a tie-up with G4S will create a global organisation with 750,000 staff and annual revenues of £13.4bn.
G4S operates a number of government contracts including four British prisons and managing 21 UK Covid-19 test centres.
Allied last year sought to allay fears that the shift of control abroad will impact its London headquarters and UK operations.
It said it was “committed to the UK market having doubled its activities in the UK in the last two years, and it will maintain the UK base to act as its headquarters for international operations outside of America.