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John Menzies PLC on Tuesday gave its Kuwaiti suitor an extension on the deadline to make a formal takeover offer, as it also continued to set out its stall as a strong independent company.
The Edinburgh-based aviation services and cargo handling firm reported a swing to profit in 2021, recording a pretax profit of $29.7 million, compared to a $155.5 million loss in 2020. This was on a 27% rise in revenue to $1.35 billion from $1.06 billion.
Menzies declared no dividend for 2021, unchanged from 2020.
The company said it has agreed to extend the deadline for National Aviation Services, a subsidiary of Agility Public Warehousing Co KSCP, to announce a firm intention to make a takeover offer or walk away. The so-called put-up-or-shut-up deadline has been moved back to March 30 from this Wednesday.
Menzies gave no reason for the extension, other than saying the three parties are in discussions. Menzies said it has no operations in Ukraine or Russia, nor any revenue exposure, though it is monitoring the wider impact on air travel of the conflict.
Late last month, Menzies accepted a £558.9 million takeover offer from NAS, having rejected three previous offers. The offer, which Agility confirmed was final, was for 608 pence per Menzies share, all in cash.
Menzies shares were down 3.0% at 493.00 pence on Tuesday afternoon.
Menzies said its business is emerging from the Covid-19 pandemic in a strong position for profitable growth. It said margins will be buttressed by structural cost savings that it has made, together with its entry to higher-margin emerging markets.
The company said it has a full pipeline of opportunities. It is targeting $100 million in net new annualised revenue in 2022 and is working on ‘several business development opportunities’ worth $200 million to $275 million of new revenue over the short- to medium-term.
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