Prosegur Weighs IPO for Cash Management Unit Next Year

  • Company is working with Goldman Sachs as it weighs options
  • IPO could value the business at more than 3 billion euros

Prosegur Cia de Seguridad SA, the Spanish security services company, is weighing options to boost growth including an initial public offering of its cash-in-transit unit next year.

The company would keep a majority stake in the business and carry out the listing of shares in the first half of next year in Spain depending on market conditions, it said in a regulatory filing Wednesday. Prosegur is working with financial advisers including Goldman Sachs Group Inc. to explore a listing, said people familiar with the matter before the filing, who asked not to be identified because the deliberations are private.

An IPO may value the unit at more than 3 billion euros ($3.4 billion), the people said. As recently as last year, the company had considered a spinoff of the business, which transports valuable items and delivers bank notes to automated teller machines in armored vehicles, they said.

A representative for Prosegur declined to comment on the value and financial advisers, while a spokesman for Goldman Sachs declined to comment.

The Madrid-based company aims to separate out its security, alarms and cash-in-transit businesses under the strategic plan, according to the filing. Prosegur will hold an investor meeting in London on Wednesday to provide more information about the potential transaction.

Prosegur shares rose as much as 8.3 percent in Madrid trading Wednesday and closed up 2.4 percent. The stock has gained 43 percent this year, valuing the company at 3.75 billion euros.

Latin America

Prosegur reported first-half sales of 1.84 billion euros, and about 43 percent came from the cash-in-transit business, according to the company’s financial statement in July. Latin America accounts for about two-thirds of the unit’s sales and exchange rates in the region put a dent in revenue in the period, the company said.

In May, UBS Group AG analysts said in a note that the company faced structural problems, particularly issues with lower cash circulation, which could lead to margin pressure in the unit.

Prosegur also provides guards for airport security and large public events, as well as home and vehicle monitoring. Founded in 1976, the company has a presence in Asia, Europe, Latin America and Australia, according to its website.

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE