Kuwaiti firm National Aviation Services (NAS) said its £469mln offer for aviation services group John Menzies (LSE:MNZS) PLC holds a “compelling opportunity” for shareholders to realise their investment.
The statement from NAS comes after Menzies’ board on Wednesday unanimously rejected its 510p per share cash offer, describing it as “highly opportunistic”. The rebuffal followed an earlier rejection of a 460p takeover bid from NAS.
NAS is an aviation services provider owned by Kuwait-listed Agility Public Warehousing Company KSCP. It operates in more than 55 airports across the Middle East, Africa and South Asia.
Menzies’ services include plane fuelling and de-icing, ground and cargo handling, and maintenance at more than 200 airports in 37 countries.
The Scottish company was severely impacted by the collapse of air travel when the COVID-19 pandemic struck in 2020 and has implemented a £25m cost-cutting drive as part of its recovery plan.
The recovery in global aviation helped Menzies achieve a strong finish to 2021, which has continued into the current year.
In a statement issued on Wednesday, the company said the NAS proposal was “entirely opportunistic, conditional” and that the terms ”fundamentally undervalue Menzies and its future prospects”.
"The board of Menzies has unanimously rejected this unsolicited and highly opportunistic proposal, which we believe does not reflect Menzies' true intrinsic business worth or its prospects,” chairman and CEO Philipp Joeinig said.
In a statement published on Thursday, NAS said it believes a combination of the two businesses would equip the combined entity with the scale and resources necessary to serve a broader customer base globally, and capitalise on growth opportunities as the aviation industry emerges from the pandemic.
"We have made an attractive offer that we urge Menzies' shareholders to consider carefully. Our offer represents a 76% premium over Menzies' share price just over a week ago,” said Hassan El-Houry, group chief executive officer of NAS.
“In our view, the fundamentals of Menzies and of the industry as a whole are unlikely to change substantially, notwithstanding cost-cutting measures by Menzies. Let's be clear: even as air travel recovers, airlines will look to contain costs with their airport service providers.”
Shares in Menzies fell around 3% to 463.86p in early trade, having risen as much as 41% yesterday on news of the NAS offer.