Deal recommended

Menzies directors and DC Thomson in line for windfall

Menzies operates at 200 airports

Directors of aviation logistics group John Menzies and the media group DC Thomson are in line for a multi-million pound windfall if the £558 million takeover of the Edinburgh business goes ahead.

The latest all-cash proposal of 608p per share is being unanimously recommended by the board which will deliver a £26.2 million payday for Dundee-based DC Thomson. The publisher of The Courier, Aberdeen P&J and Sunday Post is the third largest shareholder in Menzies with 4.3 million shares (4.68%).

Menzies chairman and chief executive Philipp Joeinig has more than 2.54 million shares, entitling him to a payout of about £15m. Non-executive director Christian Kappelhoff-Wulff has almost 1.3m shares worth just under £8m, while finance director Álvaro Gómez-Reino is in line to receive £1.78m for his 292,000 shares.

After rejecting two offers from Kuwait based National Aviation Services, the board of the FTSE 250 company agreed to open the books and begin talks on a deal.

NAS last week swooped on the business to take its stake to 19% before unveiling its latest proposal which appears to have the support of other major shareholders. Sterling Strategic Value Fund, the second largest shareholder with a 7% stake, has indicated it would back a bid at the proposed price.

The company was established as a bookshop on Princes Street in 1833 before moving into the newsagent and newspaper distribution businesses. Since 2019 it has focused on aviation services, operating at 200 airports.

NAS is a subsidiary of the Kuwait-based Agility Public Warehousing freight and logistics group and has until 5pm on 9 March to decide whether to make a firm offer for John Menzies.

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