JOHN Menzies’ spurned Kuwaiti suitor has called for access to information and claimed the Scottish company is refusing to offer “meaningful engagement” to its approach.
Gulf-based National Aviation Services stood by the indicative bid it tabled, which it described as a compelling offer, as it ramped up pressure on Menzies.
Shares in the historic Scottish firm, which provides fuelling, ground handling, lounge and maintenance services, rose after it last week revealed it had rebuffed the 510p-a-share bid proposal, and its shares have remained buoyant since.
Edinburgh-based Menzies declined to comment on the latest statement by the Kuwaiti company, but it earlier described the bid as highly opportunistic and said it “comes at a time when the full impact of management actions is not yet reflected in Menzies’ valuation”.
NAS said the bid – its second after an earlier 460p-a-share offer was rejected – represents a “full and fair value” for Menzies and that it provides shareholders a chance to realise their investment in cash in the near-term.
NAS and parent Agility Public Warehousing Company group are operators with “deep expertise” in airport services and global logistics that take a financially disciplined approach to investments and acquisitions, it said.
NAS, which said its growth record was maintained during the pandemic, said in a statement: “As a successful strategic operator in the aviation services sector, NAS has a clear and detailed view on the challenges and opportunities present in the sector as it recovers from the pandemic and has framed its analysis on that basis.
“Menzies’ board and management team have chosen not to engage with NAS or share any information to corroborate their differing views on the company and industry, and therefore valuation." NAS sees no reason to change its view on valuation as it is a “full and fair price relative to the information Menzies has provided to the market on its current business and prospects”, it said.
“NAS has today again requested information access and dialogue with management,” it added. “NAS looks forward to engaging with Menzies’ shareholders in parallel."
READ MORE: 'Highly opportunistic' bid to take over Scottish company
Hassan El-Houry, NAS chief executive, said: “We made a compelling offer that represents a 76 per cent premium to the company’s share price less than two weeks ago.
“Our view is that Menzies has a strong brand legacy with a geographic presence that is complementary to NAS, but as operators ourselves, we also see a sector facing a number of challenges and a company that lacks the balance sheet to thrive.
“Unfortunately, Menzies’ management has not meaningfully engaged in a way that changes our view.”
Menzies said earlier that the terms “fundamentally undervalue Menzies and its future prospects”.
Philipp Joeinig, Menzies chairman and chief executive, said that the board had unanimously rejected last week’s proposal, when he also said that “strong performance and momentum in 2021 has continued in 2022 with further contract wins and renewals alongside the continued recovery of global flight volumes”.
He added: “The board remains fully confident in the recovery and outlook for the global aviation services industry as it returns to pre-pandemic trading levels and benefits from long-term structural growth drivers.”
Menzies, which will announce its results on March 8, started out as an Edinburgh bookseller in 1833, but has since transformed into an international aviation services business, with global operations, earlier splitting with its distribution business.
The approach from NAS came as Menzies recorded a 335p closing price on the day before the offer was made public last week.
Shares closed down 3.5%, or 17p, at 465p on Monday.
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