John Menzies shares surge 25% after Kuwaiti suitor buys $100m stake

Shares in John Menzies soared once more on Thursday after the Kuwaiti firm that not too long ago made two failed bids for the aviation providers group purchased a $100million (£73.4million) stake within the enterprise.

The Edinburgh-based agency noticed its share value skyrocket by 24.8 per cent as Nationwide Aviation Companies (NAS) grew to become its largest shareholder after buying over 12 million shares at 605p every, equal to a 13.2 per cent stake.

This represents greater than double Menzies’ closing share value a fortnight in the past, when NAS made its second takeover supply, and is 81 per cent greater than its worth the day earlier than it entered its supply interval.

Rejection: John Menzies had derided a earlier proposal from NAS as ‘extremely opportunistic’ and one which did not correctly worth its future progress prospects

It additionally implies that any subsequent proposal for Menzies – one in every of Scotland’s oldest companies courting again to 1833 – should not fall beneath this value, in accordance with Metropolis takeover guidelines.

A subsidiary of the Kuwait-based logistics large Agility Public Warehousing Firm, NAS supplies aviation providers similar to floor dealing with and safety throughout dozens of airports within the Center East, Asia and Africa.

It made its first unsuccessful unsolicited bid for Menzies in mid-January with a 460p per share proposition, earlier than following this up a few fortnight later with a second supply value £469million.

But John Menzies derided the latter proposal as ‘extremely opportunistic’, arguing the bid did not correctly worth its future progress prospects and was poorly timed contemplating underlying gross sales volumes remained beneath pre-pandemic ranges.

The agency gives providers from airplane fueling to upkeep and floor dealing with and has operations at over 200 airports worldwide, together with London Heathrow, JFK Worldwide in New York and Frankfurt Airport in Germany.

Because of the emergence of the coronavirus pandemic, it plunged to a £120.5million loss as extreme worldwide journey restrictions triggered the variety of airplane flights to dramatically tumble.

Huge participant: John Menzies gives providers from airplane fueling to upkeep and floor dealing with and has operations at over 200 airports worldwide, together with London Heathrow

Its share value plummeted by greater than 80 per cent in tandem with the drop in demand for air journey earlier than progressively rebounding as Covid-19 vaccines have been developed and rolled out on a mass scale, and journey curbs loosened.

Since NAS has expressed curiosity in buying the enterprise, shares in John Menzies have now surged above their 2019 ranges and are over 160 per cent extra priceless than they have been 12 months in the past.

NAS continues to be hopeful of buying the corporate on the grounds that it has ‘a robust strategic and monetary rationale’, and has known as on bosses at Menzies to supply ‘data entry and dialogue with administration.’

Hassan El-Houry, the chief government of NAS, mentioned: ‘The acquisition of this vital stake demonstrates our seriousness and perception {that a} mixture of Menzies and NAS gives a compelling alternative to all stakeholders.

He added: ‘As soon as once more, we urge the Menzies board to interact with us in order that we will put our compelling and deliverable supply to shareholders and safe Menzies’ future in a extremely unsure surroundings.’

In response, senior officers at Menzies mentioned: ‘There will be no certainty that any agency supply for Menzies shall be made nor as to the phrases on which any agency supply could also be made. 

‘An extra announcement shall be made in the end. Shareholders are urged to take no motion right now.’