Financial Support In Connection With A General Offer For Malaysian Joint Venture Partner

  • 29 Jan 2007 10:42
Group 4 Securicor ("G4S"), the international security solutions group, announces that it has entered into an agreement with Eighth Jewels Systems Sdn Bhd (“Eighth Jewels”)
G4S logo

The agreement provides for G4S to act as financial guarantor in respect of the public offer by Eighth Jewels for all of the outstanding shares and warrants in Safeguards Corporation Berhad ("SCB"), a company listed on the Main Board of Bursa Malaysia Securities Berhad in Kuala Lumpur.

SCB's principal subsidiary is Safeguards Securicor Sdn Bhd ("SSSB"), Malaysia's leading security solutions provider and a joint venture between SCB (51% shareholding) and G4S (49% shareholding).

The G4S guarantee will be for a term of 12 months, with all shares and warrants acquired under the public offer serving as collateral. There will be no change in G4S's shareholding in SSSB. However, G4S will, under the agreement, exercise management and operational control of SSSB for a period of 12 months.

Other than the provision of the guarantee, there will be no financial or accounting implications for G4S arising out of the agreement with eighth Jewels.

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