JOHN Menzies' Kuwaiti suitor has moved to strengthen its position with the purchase of 13.2 per cent stake in the Scottish company.
It comes after National Aviation Services last week confirmed that it had made two proposals to Menzies, the latter at a possible offer of 510p-per-share, which were rejected.
NAS also said earlier this week that it had again requested information access and dialogue with Menzies’ management, and that it "looked forward to engaging with Menzies’ shareholders in parallel".
Edinburgh-based Menzies said it believes the offer is "opportunistic" and that the terms "fundamentally undervalue Menzies and its future prospects".
Menzies shares reportedly rose over 26% at one stage on Thursday morning, settling at around to 582p, up 24%, by midday.
NAS said following discussions with a number of Menzies’ shareholders, that Agility Strategies Holding Limited, under common control with and acting in concert with NAS, has today entered into contracts to purchase 12.1 million ordinary shares in Menzies, representing about 13.2% of the issued share capital, at a price of 605p-per-share.
READ MORE: Menzies engages with shareholders amid buyout bid
Consequently, any firm offer for Menzies, if made, will be at a price of not less than 605p-per-share, because of British regulatory requirements.
Hassan El-Houry, NAS chief executive, 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."
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