Shares of G4S Plc (LON: G4S) security today surged 25.5% after the company rejected a £3 billion takeover offer from Canadian company GardaWorld, which was offering to pay 190p for each share of the company’s outstanding shares.
The company’s board rejected the offer saying that its performance during the coronavirus pandemic period has been particularly resilient stating that: “The board believes that the timing of the proposal is highly opportunistic, coming as it does at a time of severe turbulence in global financial markets.”
On its part, GardaWorld said that it had tried to reach out to G4S’s board with the offer, but the board had summarily dismissed its attempts on three separate occasions.
Stephan Crétier, GardaWorld’s founder, chairman, president and CEO 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.”
“We will turn G4S around, ensuring it delivers for its customers, its people and the public.”
However, it is important to note that G4S has impressive annual revenues of £7 billion, placing it way ahead of GardaWorld, which is a private company.
Hence, the board probably made the right decision shutting down GardaWorld’s offer.
G4S share price
G4S shares today surged 25.5% to trade at 183p having ended Friday’s session trading at 145.8p.