Menzies rejects unsolicited £468m takeover approach
Shares in airport logistics company John Menzies soared by 43% after the board revealed it had rejected an unsolicited £468 million all-cash takeover proposal from Kuwait-based National Aviation Services at 510p per share.
Menzies shares closed at 463p (up 143p), valuing the Edinburgh business at £439 million.
The proposal follows an earlier unsolicited approach from NAS priced at 460p per share.The shares closed last night at 334p, valuing the company at £308m.
The board said that together with its financial advisers, Goldman Sachs International, it has unanimously rejected the latest offer, as “entirely opportunistic, conditional and that the terms fundamentally undervalue Menzies and its future prospects”.
It said it is committed to continuing the execution of its strategy and believes that Menzies is now well positioned for the significant opportunities ahead as the aviation industry continues to recover.
Philipp Joeinig, chairman and CEO of John Menzies, said: “The board believes the strong portfolio mix, positioning of Menzies and the ongoing execution of Menzies’ strategy will create significant value for shareholders in the near and medium term.”
The board said the business has been re-shaped with £25 million of permanent cost removed, a clear and deliverable strategy implemented and a refocussed commercial approach that has generated £120 million of net new annualised revenue. It says the proposal does not reflect the benefit of these actions or its growth prospects.
Menzies will announce its results for the financial year ended 31 December 2021 on 8 March 2022.