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GardaWorld has increased its offer for, G4S, from 190 pence per share, to 235 pence per share, as its bitter hostile takeover attempt comes to a head. The new offer values GardaWorld at £3.7 bn.

The offer also represents an almost 10% increase on Allied Universal’s possible competing offer of 210 pence per share, which the board of G4S had also previously rejected for significantly undervaluing the company.  GardaWorld, after confirming receipt of competition clearances from regulators in the US and Canada for the takeover,  previously flagged that a possible combination of G4S and Allied Universal, who represent the number one and number three ranked players by revenue in the US outsourced security services market, could raise significant competition issues.

The revised offer comes after G4S shareholders showed little support in the original offer, with GardaWorld only having received valid acceptances representing less than 0.17% of G4S’s entire issued share capital, as of 1:00 pm on 1 December 2020.  Accounting for this, GardaWorld also altered its acceptance condition, stating that, instead of the previously required 90%, it would only require a simple majority from G4S shareholders to approve the takeover. GardaWorld also included a £770m support package within its revised offer, which it had agreed with the G4S UK pension trustee.  It will be interesting to see whether this revised offer will be enough to get G4S shareholders on board, particularly as Schroders plc and Harris Associates L.P (who are amongst G4S’s largest shareholders), previously stated they would be open to an offer, however, this would have to be at a fairer price.

GardaWorld has announced that this will be the final offer for the company. Shareholders will have until 16 December to accept the offer.

G4S have responded stating that it is reevaluating the revised offer together with its financial and legal advisers.  G4S also confirmed that it is still in discussions regarding a possible offer with Allied Universal, the outcome of which is expected by 9 December 2020.

Market Tracker will continue to monitor this transaction as it develops.