UK airport service group John Menzies (LSE:MNZS) saw its share price rise by 35% following its latest rejection of Kuwait's Agility Logistics to buy the company.
Agility Logistics has offered to acquire Edinburgh-based Menzies for 510p per share in cash, amounting to approximately £469mln.
In its rejection note, the company said the offer was “entirely opportunistic, conditional and that the terms fundamentally undervalue Menzies and its future prospects.”
The offer compares with Menzies closing value of 335p at close on 8 February, representing a 52% markup.
Investors responded to the bid by flooding into Menzies shares, sending the company's price to 452p in the first 90 minutes of trading.
Menzies said the offer follows a previous all-cash offer from Agility worth 460p per share.
Chairman and CEO Philipp Joeinig said Menzies was on track to recover to pre-pandemic levels as airport traffic continued its recovery.
“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.
“The strong portfolio mix, positioning of Menzies and the ongoing execution of Menzies' strategy will create significant value for shareholders in the near and medium-term."