Board resists raider

Menzies shares rocket as NAS snaps up 13% stake

Menzies Aviation
Menzies is facing further pressure to open its books

Shares in Edinburgh-based airport logistics business Menzies shot up by 24.79% today after its Kuwaiti suitor snapped up a 13.2% stake in the company.

Agility Strategies Holding, acting in concert with National Aviation Services, bought 12.1 million ordinary shares in Menzies at a price of 605p per share.

The raid sets a new valuation of £555 million and means any offer for Menzies cannot be below this price.

NAS has made two “unsolicited” proposals to acquire the entire shareholding of John Menzies, the most recent at 510p per share in cash.

An offer of 605p per Menzies share would represent a premium of approximately 109% to Menzies’ closing share price of 290p on 2 February.

Shares in Menzies closed at 582.5p, up 116p (24.79%) on the day.

NAS said it continues to believe that the combination of the two businesses has a strong strategic and financial rationale.

In a statement it said: “Menzies and NAS share highly complementary geographical footprints and product portfolios, with minimal overlap. NAS places importance on Menzies’ Scottish heritage, its enviable brand, and its long-standing operational excellence across the globe.

“A combination with NAS would bring greater geographical diversification to Menzies, forging deeper relationships with the combined customer base.”

NAS has again requested the board of Menzies to provide information access and enter into dialogue with management. 

Hassan El-Houry, NAS CEO said: “The acquisition of this significant stake demonstrates our seriousness and belief that a combination of Menzies and NAS offers a compelling opportunity to all stakeholders.  


“If we were to make an offer at 605p per share, it would represent a premium of 109% to Menzies’ share price just over two weeks ago.

“Once again we urge the Menzies board to engage with us so that we can put our compelling and deliverable offer to shareholders and secure Menzies’ future in a highly uncertain environment.”

NAS must now announce a firm intention to make an offer or not for Menzies not later than 5pm on 9 March.

Menzies responded by saying the board has not received a further proposal from NAS.

“The board is confident in the execution of Menzies’ strategy and the significant potential value creation that this strategy will deliver in the near and medium term through the full impact of management actions, the return of underlying volumes to pre-pandemic levels and its pipeline of higher margin opportunities.

“Menzies is well positioned as a global player in a market with proven structural growth and will benefit from the continued recovery in flight and freight volumes. 

“As announced on 15 February 2022, the board will consider the best interests of Menzies’ shareholders and all actions to maximise shareholder value.”

Menzies reported an interim revenue of £415.8m for six months to 30 June 2021 and a profit of £4.7 million after reporting a loss of £80.1m in 2020.

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