Shares in security firm G4S PLC (LON:GFS) jumped 10% after saying it was reviewing options to separate its cash solutions business that is responsible for transporting, storing and managing cash.
Profits at the cash solutions division have been hit by the slowing use of cash in developed markets as more retailers switch to digital payments. It has also been affected by costs related to a series of attacks on armoured trucks in South Africa.
READ: G4S shares slide as it warns of flat full-year profits
G4S said its review of the separation of cash solutions is expected to be completed next year. The group did not say whether the business would be sold or spun off.
The announcement follows the company’s reorganisation earlier this year, which divided the group into two separate businesses with one focusing on private security services and the other on cash handling.
Chief executive Ashley Almanza said the review of the separation options for cash solutions 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," Almanza said.
Shares were changing hands at about 200p in morning trading.
According to analysts at UBS, the cash solutions business could be valued at about £1.1bn
"Depending on the outcomes, we view this is a sensible step which could unlock up to 30p of value for shareholders," the investment bank said.
It added: "We believe the step to review the unit is a natural step in broader industry consolidation in cash handling which has accelerated over the past three years."
UBS maintained a 'buy' rating and target price of 235p on G4S.