The security company G4S said on Thursday that it is planning to separate its cash and notes business, sending shares up 10%.
Separating the security arm and the cash guarding arm would have “the clear potential to enhance the focus and success of both businesses and thus to unlock substantial shareholder value.”
The review of the separation options has started and is expected to be completed within 2019.
“The implementation of our new organisation structure in January this year enables us to consider this separation in order to enhance the strategic, commercial and operational focus of both Secure Solutions and Cash Solutions,” said the group’s chief executive Ashley Almanza in a statement.
“G4S Cash Solutions has a unique portfolio of market leading cash management businesses, serving customers in 45 countries across the globe. Our Retail Cash Solutions business is the clear market leader, providing cash payment software and services in some of the world’s largest markets. With innovative, industry leading products and services and substantial market shares, G4S Cash Solutions is transforming cash management services in its markets.”
“G4S Secure Solutions is the global leader in security and delivers both conventional and integrated, technology-enabled security solutions to our customers across six continents. This business is very well positioned to address the global growth in demand for security services with a growing capacity to deliver integrated security solutions, an unrivalled global footprint and a premier brand in security.”
“The review of our separation options offers an exciting opportunity to enhance our focus for the benefit of customers, shareholders and employees. Our aim is to establish two strong, independent businesses that are able to take advantage of their leading market positions and excellent service offerings to deliver sustainable, profitable growth,” he added.
The group’s full-year trading update will be shared in March 2019.
Shares in G4S are currently trading +9.52% at 200,80 (1021GMT).