Strategy aims to allow new chief executive to focus on overhauling the security company and its battered reputation
G4S said it would sell businesses and issue new shares to strengthen its balance sheet, allowing its new boss to focus on overhauling the security company and improve its battered reputation.
G4S, which has endured an aborted takeover of Danish cleaning firm ISS, a botched contract to staff the 2012 Olympics and a profit warning in May, said it would place 140.9m new ordinary shares representing up to 9.99% of its existing share capital.
G4S said its largest shareholder Invesco supported the placing and intended to participate in it. It said the shares would be issued in an accelerated bookbuild on Wednesday. Citigroup, JP Morgan and Barclays are joint bookrunners for the sale.
Net debt stood at £1.95bn 30 June, 3.2 times its earnings before interest, tax, depreciation and amortisation. The firm targets a ratio of 2 to 2.5.
The move came as the new chief executive, Ashley Almanza, reported a first half operating profit of £201m on Wednesday, down from a restated £202m a year earlier.
Turnover grew 7.2% to £3.65bn but its operating margin slipped to 5.5% from 5.9% a year earlier reflecting a lost prison contract in the Netherlands and squeezed pricing in Britain and Europe.
The interim update from Almanza, his first since replacing embattled boss Nick Buckles in June, had been much anticipated by investors keen to know how he plans to stabilise and improve margins, and push for greater emerging markets exposure.
On Wednesday he said it would sell a number of businesses which could raise up to £250m and would restructure other units across the group which spans some 125 countries.
G4S said it had agreed to sell its Canadian cash security and Colombia Data solutions businesses for £100m and that the sale of its US business was ongoing.
"In the near term, 2013 will be a year of consolidation for the group with the actions we are now taking starting to deliver tangible benefits during 2014," Almanza said.
Restructuring programmes have started in the UK, Europe and Ireland at an expected cost of £30m-35m over 2013 and 2014, the firm said.
G4S named Misys's Himanshu Raja as its new chief financial officer on Tuesday.
Shares in G4S, which runs services from prison management and cash transportation to guarding the Wimbledon tennis championships, were trading at 249.2p on Wednesday morning, up 1.6% on the day but down 8% on a year ago, valuing the firm at around £3.5bn. Reported by guardian.co.uk 10 hours ago.
G4S said it would sell businesses and issue new shares to strengthen its balance sheet, allowing its new boss to focus on overhauling the security company and improve its battered reputation.
G4S, which has endured an aborted takeover of Danish cleaning firm ISS, a botched contract to staff the 2012 Olympics and a profit warning in May, said it would place 140.9m new ordinary shares representing up to 9.99% of its existing share capital.
G4S said its largest shareholder Invesco supported the placing and intended to participate in it. It said the shares would be issued in an accelerated bookbuild on Wednesday. Citigroup, JP Morgan and Barclays are joint bookrunners for the sale.
Net debt stood at £1.95bn 30 June, 3.2 times its earnings before interest, tax, depreciation and amortisation. The firm targets a ratio of 2 to 2.5.
The move came as the new chief executive, Ashley Almanza, reported a first half operating profit of £201m on Wednesday, down from a restated £202m a year earlier.
Turnover grew 7.2% to £3.65bn but its operating margin slipped to 5.5% from 5.9% a year earlier reflecting a lost prison contract in the Netherlands and squeezed pricing in Britain and Europe.
The interim update from Almanza, his first since replacing embattled boss Nick Buckles in June, had been much anticipated by investors keen to know how he plans to stabilise and improve margins, and push for greater emerging markets exposure.
On Wednesday he said it would sell a number of businesses which could raise up to £250m and would restructure other units across the group which spans some 125 countries.
G4S said it had agreed to sell its Canadian cash security and Colombia Data solutions businesses for £100m and that the sale of its US business was ongoing.
"In the near term, 2013 will be a year of consolidation for the group with the actions we are now taking starting to deliver tangible benefits during 2014," Almanza said.
Restructuring programmes have started in the UK, Europe and Ireland at an expected cost of £30m-35m over 2013 and 2014, the firm said.
G4S named Misys's Himanshu Raja as its new chief financial officer on Tuesday.
Shares in G4S, which runs services from prison management and cash transportation to guarding the Wimbledon tennis championships, were trading at 249.2p on Wednesday morning, up 1.6% on the day but down 8% on a year ago, valuing the firm at around £3.5bn. Reported by guardian.co.uk 10 hours ago.