G4S makes dividend pledge to sweeten shareholders as deadline approaches on predator’s £3bn offer
G4S has offered a final sweetener to shareholders ahead of the deadline to respond to Canadian predator Garda World’s £3billion offer.
The British security giant, which employs 550,000 staff worldwide, said it would resume the dividend in 2021 and that there was ‘clear potential for significant further cash returns’.
Shareholders have until Saturday to accept the 190p-per-share offer, which has been rejected by the G4S board as ‘wholly inadequate’.
G4S shareholders have until Saturday to accept the 190p-per-share offer, which has been rejected by the G4S board as ‘wholly inadequate’
It has laid out a plan it says will generate £1billion of cash in five years and grow revenues by up to 6 per cent per year.
In a final letter to shareholders, released yesterday, G4S chairman John Connolly said: ‘G4S is an outstanding business with excellent prospects.’
He added that the stock is ‘well-positioned’ to soar once the vaccine arrives.
Garda hit back saying they were ‘aspirational targets’ rather than real forecasts.
It said: ‘Shareholders should be alarmed that their funds are earmarked to promise an unspecified size and policy on dividends, resuming a year later than G4S’s peers.’