BY Richard Summerfield
Following a long-running battle for control of the company, G4S shareholders have finally accepted a $5.3bn bid from Allied Universal.
Allied Universal has received valid acceptances representing roughly 79 percent of the G4S share capital. The threshold was 50 percent plus one G4S share.
The deal will create the world’s largest private security company, generating more than $18bn in revenue and employing more than 750,000 security guards and other staff.
The final Allied Universal offer price of 245 pence per G4S share represents a premium of approximately 68 percent to the closing price of 146 pence per G4S share on 11 September 2020, the last business day before commencement of the offer period, and a premium of approximately 91 percent to the three-month volume weighted average closing price of 128 pence per G4S share on 11 September 2020.
Allied Universal beat Canadian rival GardaWorld to G4S, after the two companies had been involved in a bidding war. In December, G4S agreed to be acquired by Allied, rejecting GardaWorld’s offer of 235 pence per share in favour of Allied’s bid, which was 10 percent higher. GardaWorld had been attempting to acquire G4S since last summer, raising the price of its bid four times since first approaching shareholders about a potential takeover.
“We are pleased that a very large proportion of shareholders have accepted Allied Universal’s final offer,” said John Connolly, chairman of the G4S board. “The G4S board believes that the offer provides shareholders with an attractive premium, while securing the future success of G4S for employees, customers, pension scheme members and other stakeholders.”
“The combination of G4S and Allied Universal creates the global leader in security with revenues of over $18billion, industry leading talent and expertise and unmatched market coverage,” said Ashley Almanza, chief executive of G4S. “This unique combination will offer customers exceptional service and provides employees with an exciting future.”
He added: “My team and I look forward to working with Allied to support a successful integration of the two businesses.”
News: G4S saga ends as shareholders accept $5.3 billion Allied Universal offer