NAS buys £73m worth of John Menzies shares

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John Menzies has revealed that the board has not received a new proposal from the National Aviation Service (NAS) following NAS’s £73million purchase of shares.

The Kuwaiti company’s purchase made it John Menzies’ biggest investor after his offer to buy the company for £468million was rejected.

NAS has entered into contracts with Agilities Strategies Holding to buy 12.1 million shares of Menzies representing approximately 13.2% of the issued share capital at a price of 605 pence per share.

It also means, due to city rules, that any subsequent bids for the business must not fall below this price.

In a business statement from John Menzies, he said: “The Board of Directors is confident in the execution of Menzies’ strategy and the significant potential value creation that this strategy will deliver in the short to medium term through the full impact of management actions, underlying volume returns 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 cargo volumes.

“As announced on February 15, 2022, the Board of Directors will consider the best interests of Menzies shareholders and all actions aimed at maximizing shareholder value.”

The board noted that there was no “certainty” that the company would receive a firm offer for Menzies or as to the terms on which the firm offer is made.

He urges shareholders not to take any action at this time.

Following interest in buying John Menzies, his stock price has risen above 2019 levels and is 162% higher in value.

Hassan El-Houry, Managing Director of NAS: “The acquisition of this significant stake demonstrates our seriousness and our belief that a combination of Menzies and NAS provides a compelling opportunity for all stakeholders.

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