Security firm G4S is considering separating out its cash solutions business in a move that it says could unlock “substantial” value for shareholders.
Shares in the company jumped 10% on the news, as the company said it would evaluate options for separating cash solutions off from its other main unit secure solutions.
A de-merger or IPO of the spun-off business are likely to be on the table.
Chief executive Ashley Almanza said: “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.”
The unit handles the safe transportation and storage of cash including replenishing ATM machines and a cash automation solution for retailers.
Revenue for this part of the business in the 2017 financial year was £1.2 billion.
It operates in 45 countries, including some of the world’s biggest markets.
The move to separate the units follows the implementation of a new organisation structure at the beginning of this year which established Global Cash Solutions as its own division.
The G4S board said a separation “has the clear potential to enhance the focus and success of both businesses and thus to unlock substantial shareholder value”.