August 9, 2019 / 6:39 AM / 4 months ago

UPDATE 1-G4S to separate cash solutions unit, plans to create two companies

(Adds details on plans, background)

Aug 9 (Reuters) - British security contractor G4S said on Friday its board had approved plans to separate its cash solutions business as it looks to focus on its core security operations.

The world's largest private security group said its expects costs to separate the businesses would be around 50 million pounds and that the demerger of the cash business would be completed in the first half of 2020.

A review to separate the cash solutions division, which contributed less than one-fifth to G4S' revenue in 2018, started in December 2018 and the company said it took a charge of 17 million pounds.

The company, which had received a number of unsolicited expressions of interest from third parties to acquire parts or all of the cash solutions business, said it would still evaluate proposals for all or parts of the operation along with its demerger plans.

The cash business includes Cash 360 machines operated by retailers and a cash transport business and is responsible for transporting, storing and managing cash.

G4S said first-half adjusted profit before interest, tax and amortization rose to 234 million pounds ($284.05 million), slightly above analysts' average consensus of 231 million pounds, based on company compiled estimates.

$1 = 0.8238 pounds Reporting by Justin George Varghese and Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva, Bernard Orr

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