Menzies agrees terms of £571m Kuwaiti takeover
Directors of John Menzies and GIL International Holdings, a wholly-owned subsidiary of Kuwait-based Agility Public Warehousing Company, have agreed the terms of the recommended cash offer for the Edinburgh-based aviation services company.
Each Menzies shareholder will receive 608p in cash per Menzies share valuing the company at approximately £571 million and £763m on an enterprise value basis.
The final offer price represents an 81% premium to the closing price of 335 pence per Menzies share on 8 February, the last business day prior to the commencement of the offer period.
Menzies provides services such as cargo handling at more than 200 locations in more than 37 countries, and has 25,000 employees.
Agility will create the combined group by combining Menzies’ business with that of its existing wholly-owned subsidiary, National Aviation Services (NAS), one of the industry’s fastest-growing regional aviation services providers, with a presence in more than 55 airports across the Middle East, Africa and South Asia.
The combined revenues of the Menzies and NAS were in excess of $1.5 billion in 2021. The new group is expected to have approximately 35,000 employees with a presence at more than 250 airports in 57 countries, handling more than 600,000 aircraft turns a year.
Philipp Joeinig, chairman and chief executive at Menzies, will assume the same role in the combined business, with Menzies’ CFO and COO also retaining their roles. Hassan El-Houry, group chief executive Officer at NAS, becomes chairman.
Mr Joeinig, whose 2.54 million shares entitles him to a £15m payout, said: “The Menzies directors believe that the offer represents a fair and recommendable price for shareholders which recognises Menzies’ future prospects.
“Menzies is an outstanding business with a long and rich history. The board of Menzies applauds the work that the Menzies management team have done to steer the business through the challenging impacts of the pandemic and position the business for continued future growth and the next evolution in its journey.
“The Menzies all-cash offer from Bidco represents an opportunity for current shareholders to realise value for their investment at an attractive premium and valuation multiple.”
The deal 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%). Other shareholders expect seven figure windfalls.
Menzies, one of Scotland’s oldest and largest companies, was established in 1833 as a book seller on Edinburgh’s Princes Street.