G4S plans possible IPO of armoured-truck, cash-delivery unit
The cash-transportation business has been hit by increased use of digital payments and a wave of attacks on armoured trucks in SA
London — Security company G4S is weighing an exit from a $1.5bn cash-transportation business that’s been hit by waning use of notes in developed markets and a wave of attacks on armoured trucks in SA. A review of the division is expected to be completed next year, with the most likely options being an initial public offering (IPO) or spin-off, CEO Ashley Almanza said on a call on Thursday. The unit could be valued at about £1.57bn, according to RBC Capital. Shares of London-based G4S jumped the most in more than two years on an intra-day basis. The move comes after a re-organisation of G4S at the start of this year, which divided the group into two divisions focused on private security services and cash handling. Profitability in Cash Solutions has been on the wane as retailers in developed countries shift to digital payments, and partly due to surge in the number of attacks on its vans in SA, which has increased costs. Developed markets account for about two-thirds of the cash busi...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.