Menzies shares rocket after NAS buys stake
Shares of aviation services firm Menzies soared today 23.94 per cent after the company’s Kuwaiti suitor NAS acquired a stake in the Edinburgh-based company.
NAS’s parent company Agility said today in a statement it has entered into contracts to purchase 13.2 per cent of Menzies’ total share capital at 605p per share, becoming the majority stakeholder.
According to the company, who has defended the previous 450p and 510p per share proposals, 605p per share would represent a 109 and 81 per cent increase to the firm’s closing prices on 2 and 8 February.
“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,” said NAS’s chief executive Hassan El-Houry.
“If we were to make an offer at 605 pence per share, it would represent a premium of 109 per cent to Menzies’ share price just over two weeks ago.
“Once again we urge the Menzies board to engage with us so that we can put our compelling and deliverable offer to shareholders and secure Menzies’ future in a highly uncertain environment.”
NAS’s decision to increase its proposal came after Menzies said twice that the takeover was “opportunistic” as it undervalued the company.
On 9 February, the group’s chief executive Philipp Joeinig said the board had rejected “this unsolicited and highly opportunistic proposal”, adding six days later that the proposal’s EBITD was “significantly lower than achieved in comparable transactions over the last decade in our sector for other assets of Menzies’ size and standing,”