Bloomberg: Charterhouse Capital Mulls $1.6 Bln Offer For G4S Cash Solutions Unit

(RTTNews) - Private equity firm Charterhouse Capital Partners LLP is considering making an offer worth 1 billion pounds, or $1.6 billion, for UK-based security services provider G4S plc's (GFS.L, GFSZY.PK) cash solutions business, Bloomberg reported Saturday, citing three people familiar with the matter.

London-based Charterhouse has approached banks and its investors over financing a deal for the unit, while G4S discussed the sale option internally, according to the Bloomberg report.

G4S, the world's largest security services provider, has reportedly not entered into formal talks with Charterhouse or hired an external adviser for the unit that provides transportation of cash using high-security vehicles and manages ATM machines. Other private equity firms are also said to have shown interest in the unit.

While reporting its financial results for the first half of 2013 in late August, G4S announced disposals of its Canadian cash solutions business and Colombia Data Solutions.

G4S said at that time that it is divesting a number of non-core businesses, which will improve its strategic focus and realize substantial cash proceeds. The company also announced its intention to raise funds through a 9.99 percent placing of new ordinary shares.

Charterhouse invests in large European buy-outs. The company has so far completed over 137 transactions worth more than 50 billion euros.

GFS.L closed Friday's trading on the London Stock Exchange at 242.00 pence, up 1.50 pence or 0.62 percent on a volume of 5.64 million shares.