The shares of G4S (LSE: GFS) climbed 1% to 261p this morning after the FTSE 100 security giant revealed it had rejected a £1.6bn offer for its armoured van cash-transportation business.
According to G4S, the offer from Charterhouse Capital Partners apparently “fundamentally undervalues the business and its prospects”. G4S was quick to reaffirm that the cash solutions segment is a core part of its business and long-term strategy.
Listing the attractive qualities of the division, G4S reiterated that its cash solutions businesses hold either the number one or two market position in over 92% of the 66 countries in which they operate.
In rejecting the offer, G4S accused the Charterhouse Capital Partners proposal of being “highly opportunistic” in both its nature and timing.
With a market cap of £4bn, G4S’s shares trade at 15 times expected earnings, and offer a prospective dividend yield of 3.6%.
Of course, whether G4S’s current valuation — and its strategy to invest in its core businesses – make G4S shares a ‘buy’ remains your decision.
