G4S rejects £1.55bn bid for cash transport arm

The FTSE 100 group said the offer from private equity firm Charterhouse Capital fundamentally undervalued the business.

G4S has been under the spotlight recently over a Government probe into outsourcing contracts. It is said to have been under pressure from activist investors to dispose of the cash solutions arm in order to streamline its operations.

But executives insisted that the division, which transports money to ATM machines in high security vans, was key to its plans.

Charterhouse, which bid for the business, already owns Yorkshire high street retailer Card Factory as well as parts of AA and Saga.

G4S said: “The board consider the group’s cash solutions services to be core to G4S’ operations and strategic plans.

“The board regards the nature and timing of the approach to be highly opportunistic and, following due consideration, with the assistance of financial advisers, the offer has been firmly rejected considering the strategic importance of the cash solutions businesses to G4S and because the board believes the conditional offer fundamentally undervalues the business and its prospects.”

G4S highlighted the strength of a business which has seen stable cash usage through economic downturn, and where circulation grew strongly from 2007 to 2011.

It said it was among the top two operators in the majority of the 66 markets where it operated.

Turnover for the division grew 3 per cent to £1.29bn in 2012 though it declined slightly in Europe, its biggest market.

G4S employs 2,600 in Yorkshire on contracts ranging from providing security at Headingley to facilities management services at all courts and tribunals premises.