Shareholders Approve G4S Acquisition

G4S shareholders have accepted a £3.8 billion from Allied Universal, bringing to a close a months-long battle between two firms to take control of the security services company.

Allied Universal said it had received valid acceptances representing roughly 79% of the G4S share capital. The threshold was 50% plus one G4S share.

The price per share of 245 pence represents a premium of approximately 68% to the closing price of 146 pence per G4S share on 11 September 2020 (being the last business day before commencement of the offer period).

Rival bidder GardaWorld, the Canadian security and CIT company which, is significantly smaller than G4s, had made a series of takeover attempts last year which were rebuffed, resulting in a hostile bid late last summer. Having raised the price four times, its final offer was 235 pence per share. The G4S Board unanimously recommended the higher offer from Allied Universal to shareholders.

G4s had already sold the majority of its cash handling business to Brinks last year. The merger between it and private-equity backed Allied Universal will create Allied Bidco, the world’s largest private security company, generating more than $18 billion in revenue and employing more than 750,000 security guards and other staff.

According to Allied Bidco, it has obtained most of the required anti-trust and regulatory approval and foreign direct investments clearances in applicable jurisdictions. The acquisition is expected to be completed in April.