Canadian rival tables £3bn hostile bid for security giant G4S

Shares in G4S surged in early trading after the prospective bidder GardaWorld confirmed the move.

Canadian firm GardaWorld said it has bid almost £3 billion to take control of UK security giant G4S.

GardaWorld, the world’s largest privately-owned security firm, said on Monday that it is offering £2.96 billion for the London-based firm.

Shares in G4S surged in early trading after the prospective bidder confirmed the move, jumping by 22.4%.

The offer of 190p per share represents a 30% premium on the company’s closing price on Friday September 11, GardaWorld said.

G4S was last valued above 190p on February 26, before it felt the full impact of the coronavirus pandemic.

The bidder said it has made three separate approaches to G4S but that the British target has “refused to engage in meaningful discussions”.

GardaWorld said that it hoped publicly announcing its offer will “put pressure” on the G4S board to come to the table for talks regarding the bid.

G4S has “failed its shareholders, employees, customers and the public for at least a decade”, but could be rescued by the takeover offer, GardaWorld said in a stinging statement.

The hostile bid comes more than a year after GardaWorld walked away from preliminary talks over a potential £3 billion offer for G4S.

Stephan Cretier, founder and chief executive officer of GardaWorld said: “G4S needs an owner, not a manager. GardaWorld has 25 years of experience in the sector and we know how to improve and repurpose this business.

“As owner-operators, we believe that the combined business’s operations will offer a better future for all those who depend on G4S.

“We will turn G4S around, ensuring it delivers for its customers, its people and the public.

“The combination of GardaWorld and G4S is an important part of our strategy to create the world’s leading security services business. If successful, our commitment to the UK will be for the long-term.”

The PA news agency has contacted G4S for a comment.