GardaWorld extends 'full and fair' offer for G4S
GardaWorld has extended its hostile £2.9bn offer for G4S to mid-December and indicated it would not be pressured into raising its bid.
The Canadian company said the cash offer for the FTSE 250 security group would stay open until 13:00 GMT on 16 December. GardaWorld said it held or had received acceptances from shares representing 1.73% of G4S's share capital including 0.17% of acceptances.
GardaWorld, backed by private equity group BC Partners, has offered 190p a share for G4S. The UK company has repeatedly rejected the bid as too low and has sought to convince shareholders of its potential including promising a return to paying dividends.
G4S shares fell 0.7% to 226.5p at 09:20 GMT - still well above GardaWorld's offer. GardaWorld said it was a disciplined buyer and would not be moved by "post-pandemic market euphoria".
"Throughout this process we have not seen a single piece of evidence to suggest that our offer of 190p in cash is anything other than full and fair. Aspirational targets and non-binding promises on dividends do not, in our view, equate to a sound business valuation," GardaWorld said.
"Covid-19 was not the cause of the slump in performance at G4S and neither will its hoped-for abatement be the trigger for improved business performance."
G4S has also received a higher bid approach from California-based Allied Universal Security Services. It rejected the approach in early November. It disclosed information to GardaWorld on Thursday to match the data revealed to an unnamed rival potential bidder.
The company urged shareholders to take no action in relation to GardaWorld's offer, which it reiterated was too low.
"G4S has a bright, independent future and the board has unanimously rejected this wholly inadequate offer. GardaWorld has received only 0.17% acceptances, reflecting the derisory level of the offer." the company said.