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February 18, 2022updated 22 Feb 2022 10:06am

Kuwait’s NAS to buy 19% stake in UK’s John Menzies

Menzies provides ground, fuel and air cargo services at over 200 airports.

Update

Kuwait-based National Aviation Services (NAS) affiliate Agility Strategies has announced an agreement on 18 February on the acquisition of additional 5.8% stake in the UK’s airport services group John Menzies.

With the earlier 13.2% stake deal, the total interest to be acquired by Agility in Menzies comes to 19%.

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On 17 February, Agility Strategies has signed an agreement to acquire a 13.2% stake in the UK’s airport services group John Menzies.

In a deal valued at $100m, Agility Strategies will purchase 12.1 million Menzies shares for 605 pence per share, making Agility the biggest shareholder.

This comes after John Menzies turned down NAS’ $635m acquisition proposal offer at 510 pence per share earlier this week.

John Menzies termed the earlier proposal as ‘highly opportunistic’, adding that it undervalued the London-listed firm.

However, NAS had then stated that the offer represented a ‘full and fair value’ for John Menzies, reported Reuters.

This rejection drove NAS to respond with a more compelling offer.

NAS currently expressed confidence in the merger of the two businesses as they share ‘complementary geographical footprints and product portfolios’ with less overlap.

NAS CEO Hassan El-Houry said: “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. If we were to make an offer at 605 pence per share, it would represent a premium of 109% 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 was established in 2003 and operates in over 55 airports in the Middle East, Africa and South Asia.

It handles more than 50 airport lounges and serves seven airlines.

Menzies offers ground, fuel and air cargo services at over 200 airports in 37 countries.

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