ArmorGroup is one of the larger private security contractors in Iraq but has suffered from bad publicity involving one of its rivals recently. FTSE 100 group G4S, formerly called Group 4, holds various contracts in Western Europe.
The bid values ArmorGroup at 80p a share. This includes the 1.5p dividend a share already announced by the company. It represents a 127% premium to the 35.25p share price on the day before the offer was first announced. ArmorGroup was advised by Rothschild.
G4S has already received an irrevocable undertaking to accept the offer from major shareholders
G4S chief executive Nick Buckles said: “ArmorGroup’s experience in providing protective security and other related services, its international presence and strong customer relationships means that it is a natural fit with our existing business.” Greenhill acted for G4S. Deutsche assisted. Hoare Govett is ArmorGroup’s broker.