Morningstar | GFS Shares Rise on Offer From Peer
No-moat G4S shares jumped 20% on the back of an approach from privately held Canadian peer Gardaworld. Gardaworld has not yet specified whether it will seek to acquire a part of or the whole business, and no price has been mentioned. The company now have until the May 8 to issue a full offer. In the meantime, we reiterate our GBX 337 fair value estimate for the stock.It’s unlikely from an antitrust perspective that Gardaworld could absorb the entire business without having to sell off large chunks where there is overlap, but this is not the first action between the companies. In 2014, Gardaworld bought the G4S Canadian cash business. We await details of the offer and believe this could be the key to unlocking significant shareholder value.
G4S is a security company that provides security and related services. Co.'s Secure Solutions products are comprised mainly of manned security and facilities management services, and its Cash Solutions products are comprised mainly of physical cash management services. Within the Secure Solutions services, Co. also provides: technology services, comprising the supply, installation and monitoring of alarm systems, and security and building systems technology; facilities management; and care and justice services. Within the Cash Solutions services, Co. also provides technology services to retailers, comprising hardware and software for customer cash management and related services.
Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.
Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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