G4S plc - Review of Separation Options for G4S Cash Solutions

[idpickering]

Some here may hold G4S in their HYPs. The stock is up 9.6% as I type. This might be why;

The Board of G4S is today announcing that it is reviewing options for the separation of the Group’s Cash Solutions businesses from the Group, following the establishment of the Global Cash Solutions division on 1 January 2018.

Since 2013, G4S’s portfolio management programme has created a focused Group with two principal business segments: Secure Solutions and Cash Solutions. The Board believes that a separation of Cash Solutions has the clear potential to enhance the focus and success of both businesses and thus to unlock substantial shareholder value.

The review of separation options has commenced and is expected to be completed during 2019. An update will be provided with the Group’s full year results in March 2019.

https://www.investegate.co.uk/g4s-plc-- ... 0000H0186/

[YeeWo]

Yesterday I did some tinkering and top-sliced Diageo, added some dividend cash and topped-up Inchcape and G4S. Nice to see the Gazelle-like leap in the SP today. Still overall circa -7% YTD, while G4S is still badly down YTD, nonetheless good to see G4S being proactive acting in the shareholder interest........

[YeeWo]

https://www.bbc.co.uk/news/business-47883458

And now a possible Bid! Garda World have to pay up or go away by early May apparently. I sold some G4S on 31 Jul 17 for £3.27, on that basis I consider today's first flush of a 19% rise to £2.20 nothing spectacular. With a Global Footprint et al, I think G4S management should hold out for something >£3 at the very very least.

Opinions please!!

[YeeWo]

"British contractor G4S plans to spin off its cash-handling business as a separate listed company in the first half of 2020, leaving it focused on security services, in the culmination of a six-year overhaul." https://www.ft.com/content/a67e058e-ba6 ... 884d3ea203

Does anybody who holds G4S have an opinion on this development? In April, as mentioned in this thread, the Garda World interest drove the SP up to circa £2.20. The Garda World bid clearly never materialised and management have clearly decided on a spin-off instead. As I type the SP of G4S is £1.71, Mr Market clearly doesn't think much of the spin-off plans perhaps?(!).

Opinion gratefully sought........

[kempiejon]

This looks as high as the yield has been in a decade, over the past 5 years dividend has only moved up about 1% CAGR; I hold, no plan to add or change.