JOHN Menzies has said it has engaged with its shareholders before the board again unanimously rejected a £469 million takeover proposal from Kuwaiti-based National Aviation Services.

The Scottish company, which dates back to 1833 when it began as a bookshop in Edinburgh, has rejected two possible offers, the second of 510p-per-share last week, which it has again said was opportunistic.

NAS insisted on Monday that its offer was a “compelling opportunity” for shareholders.

Menzies said in a statement to the London Stock Exchange: “The board of Menzies has engaged with its shareholders following its announcement of the NAS proposal on February 9.

“As previously announced, the board of Menzies has unanimously rejected the NAS proposal, having concluded that it is opportunistic, conditional and that the terms fundamentally undervalue Menzies and its future prospects.”


It added that when adjusted for permanent cost savings of £25 million that the management team of Menzies has already delivered, the NAS proposal implies a multiple which is “significantly lower than achieved in comparable transactions over the last decade in our sector for other assets of Menzies' size and standing”.

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It also said that the NAS proposal fails to take account of Menzies' strategy and the “significant potential value creation” from the full impact of management actions not yet being reflected in Menzies' valuation, and the return of underlying volumes to pre-pandemic levels “with Menzies well positioned to benefit as a global player in a market with proven structural growth”.

HeraldScotland: Source: London Stock Exchange. Source: London Stock Exchange.

It said the possible offer also failed to take into account the pipeline of higher margin opportunities that will generate £80 million of net new annualised revenue from commercial opportunities and £150-200m of new revenue over the short to medium term from several business development opportunities.

Menzies added: “There can be no certainty that any firm offer for Menzies will be made nor as to the terms on which any firm offer may be made.

"A further announcement will be made in due course. Shareholders are urged to take no action at this time."

NAS is to announce a firm intention to make an offer or not by March 9.

Shares in Menzies closed up 2.6 per cent, or 12p, at 477p.