Security giant G4S backs £3.8 bil takeover from US rival

LONDON – Bosses at British security giant G4S, which guards sites including prisons, offices and Covid-19 test centres, today backed a £3.8 billion (RM20.7 billion) takeover from US rival Allied Universal that trumps a bid from Canada’s GardaWorld.

G4S, in a statement posted on the London Stock Exchange, said its board is “unanimously recommending” Allied Universal’s new offer after concluding that 245 pence per share is “fair and reasonable”.

The UK security titan, which in recent years has been caught up in scandals across the world, added that it has rejected GardaWorld’s improved £3.7 billion bid lodged last week and was pitched at 235 pence per share.

The combined company will have total revenues of around US$18 billion (RM73 billion) with a “world-leading” integrated security business and a strong international platform.

“The combination of G4S and Allied Universal creates the global leader in security with over 750,000 employees, industry-leading capabilities and unrivalled market coverage,” said G4S chief executive Ashley Almanza in the statement.

“This unique and compelling combination will offer customers exceptional service and provides employees with an exciting future.”

The London-listed company had already turned down a £3.25 billion proposal from Allied Universal early last month, arguing that this conditional approach undervalued its prospects.

Steve Jones, president and chief executive of Allied Universal, today said the group is “delighted” to win the board’s recommendation.

“Our businesses know each other well, we share a similar culture and values, and I am excited about what the combination of Allied Universal and G4S can deliver.

“G4S has an excellent service offering, an enviable global customer portfolio, and it is led by a highly experienced management team.”

G4S, which itself employs 533,000 staff across 85 countries, earlier faced a takeover tussle between Allied Universal and GardaWorld, with both suitors pledging to vastly improve its tarnished image.

While mostly linked to allegations of mistreatment by staff in the UK, the company has also been accused of mismanagement at the US military’s Guantanamo prison camp and in the West Bank.

The firm has become an attractive buying opportunity after its share price hit a 16-year low earlier this year. – AFP, December 9, 2020