Aviation

John Menzies accepts new takeover offer of £ 550 million from Kuwaiti competitor | Airline

The British airline John Menzies has agreed to buy for 550 million pounds with a Kuwaiti competitor, which is likely to end price negotiations after four separate bids.

The Edinburgh-based company, which offers a variety of services from cargo and baggage handling to passenger check-in as well as icing protection and aircraft refueling, said in the stock market on Monday that it would unanimously recommend the deal if the National Aviation Authority (NAS) confirms it. 608p rate per share.

Among them were airlines most affected during the coronavirus pandemicas blocking restrictions forced airlines to cut flights by several months. Outsourcing services were particularly vulnerable as airlines sought to cut costs as quickly as possible.

The acquisition would complete one of the most unusual corporate stories on the London Stock Exchange. Menzies was founded in 1833 in Edinburgh as a bookstore, and the eponymous founder became the first Scotsman agent of the writer Charles Dickens and Punch magazine.

The distribution of newspapers and the network of newsstands and bookstores became an important part of the business, and in 1948 Menzies opened its first point at the airport, and in 1987 switched to cargo handling.

It sold its retail business in 1998 and sold its newspaper business four years ago to focus on aviation services, shortly before the aviation industry experienced its greatest crisis.

Menzies revealed the first two approaches to absorption 460p and 510p to share on February 9th. He described these initial undesirable approaches as “very opportunistic” because the assessment did not properly reflect the value of the business before the pandemic.

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NAS returned with a 605p offer for the stock, which was also rejected by the Menzies board before it accepted the final 608p offer.

However, on Monday morning, shares of Menzies traded below this offer: shares rose only 0.3% to 585 pence – although it was the highest level since September 2018.

Menzies said, “NAS has confirmed to the board that the financial terms of the final offer are final and will not be raised” unless another bidder enters with a higher bid. Under stock market rules, NAS must make a formal offer by March 9th.

https://www.theguardian.com/business/2022/feb/21/john-menzies-takeover-offer-kuwaiti-national-aviation-services John Menzies accepts new takeover offer of £ 550 million from Kuwaiti competitor | Airline

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