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(Alliance News) - Shares in John Menzies PLC jumped a quarter on Thursday after its takeover suitor said it has agreed to buy a 13% stake in the company at significant premium.
John Menzies on Tuesday repeated its rejection of a takeover approach from Agility Public Warehouse Co KSC, saying the terms "fundamentally undervalue Menzies and its future prospects". Agility on Monday had argued its latest cash proposal of 510 pence per John Menzies share would give "full and fair" value for shareholders.
The Kuwaiti logistics company had made the cash offer for the aviation services firm via its holding subsidiary, National Aviation Services Holding earlier this month. The offer, which Menzies has labelled as "entirely opportunistic", followed a 460p approach in January.
In the latest twist, NAS said Agility Strategies Holding Ltd, an entity under common control with and acting in concert with NAS, has agreed to buy 12.1 million shares in John Menzies, representing just over a 13% stake, at a price of 605p per share.
Consequently, any firm offer for John Menzies will be made at a price of not less than 605p per share, being more than double its closing price of 290p on February 2. This 605p marks a 19% premium to NAS's previous 510p approach.
John Menzies shares were trading 25% higher at 586.50p in London on Thursday.
"NAS continues to believes that the combination of the two businesses has a strong strategic and financial rationale. Menzies and NAS share highly complementary geographical footprints and product portfolios, with minimal overlap," the firm said, adding it again requests dialogue with John Menzies management.
By Lucy Heming; lucyheming@alliancenews.com
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