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Gardaworld advisers set for £312m payday in G4S bid

City AM logo City AM 18/10/2020 James Warrington
a blue truck parked on the side of a road © Provided by City AM

Advisers to Gardaworld are in line for a £312m payout from the Canadian firm’s hostile takeover bid for outsourcing giant G4S.

Banks, lawyers, accountants and PR professionals are set to share a reward package ranging from £13m to £312m if Gardaworld’s £3bn bid is successful.

Read more: G4S hits back at Gardaworld over ‘misleading’ pension scheme claims

In a takeover document published yesterday, Gardaworld said it will pay up to £100m to Barclays, UBS, Jeffries and Bank of America for financial and corporate broking advice.

A further £180m could be handed to banks that provide financing for the deal, while lawyers are set to earn £18m and PR advisers including London-based Montfort could net £7m.

Gardaworld, which is 51 per cent owned by private equity fund BC Partners, last month sparked a bitter tussle with G4S after tabling a 190p per share offer for its FTSE 250 rival.


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G4S has rejected the bid, but the Canadian company has repeatedly urged shareholders to ask the board to enter into negotiations.

In this document Gardaworld boss Stephan Cretier launched a fresh salvo at G4S for its “baseless optimism” and “history of operational missteps”.

“Simply said, a cookie-cutter approach will not succeed in fixing G4S’s operations,” he said. “This operation needs a deep root and branch reprogramming.”

G4S is the largest privately owned security services firm in the world, and employs more than 102,000 people globally. However, it has been rocked by a number of scandals in recent years, including its management of UK coronavirus test centres and the loss of a major government contract.

Read more: G4S rejects clone Gardaworld bid as takeover pursuit goes on

Gardaworld has already upped its bid twice, but top investors have said the 190p per share offer still undervalues the firm. Its shares closed at 208.9p last week.

G4S last week said it had also received interest from rival suitor Allied Universal, which is one of the largest security firms in the US.

The post Gardaworld advisers set for £312m payday in G4S bid appeared first on CityAM.

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