Menzies Aviation appears to be on the verge of being bought by Agility Logistics for 608 British pence per share.
The bid, which is widely reported as hostile, comes after the Scottish airfreight wholesaler rebuffed previous bids of 460p, 510p and 605p for its 12-million-plus shares by the Kuwaiti supply chain services provider.
According to the BBC, the combined offer is 560 million pounds sterling.
Nick Savvides of The Loadstar reports from London that Menzies Aviation “has agreed to recommend what Agility says will be its final offer of $8.27 per share, to shareholders”.
The decision to recommend to Menzies’ shareholders that they accept the latest offer comes after Agility subsidiary, National Aviation Services (NAS), failed in three previous per-share bids.
If the latest bid is accepted, NAS, which operates in Africa, Asia and the Middle East, will acquire the Edinburgh-run company that operates in 37 countries and dates its origins back to 1833.
Its founder, John Menzies, made a name for himself selling books by writers like Charles Dickens.
The pioneering businessman also started The Scotsman newspaper, and became a prominent figure of high street society across the British Isles.
Continuous growth and diversification catapulted the Menzies brand ever higher, enabling it to become one of the UK’s biggest newspaper distributors.
In 1987 it literally took to the skies, building one of the most reputable brands for passenger, ramp and cargo handling.
Sadly, Covid-19 dealt the company a heavy blow, forcing it to cut 17 500 jobs worldwide in March 2020.
In comparison NAS, the BBC reports, “expanded across emerging markets in recent years and now owns a 19% stake in Menzies Aviation after purchasing millions of pounds worth of shares in the past month”.
The corporation quoted a Menzies statement saying: “The board has considered the final proposal and indicated to NAS that it would be willing unanimously to recommend an offer at the financial terms of the final proposal to Menzies shareholders.
"Accordingly, the board is in discussions with NAS in relation to these terms and will be providing NAS with access to management and due diligence information."
The BBC furthermore reports that NAS has confirmed to the board that "the financial terms of the final proposal are final and will not be increased”, although this could change if someone else tries to take over Menzies Aviation.
“Philipp Joeinig, Menzies Aviation's chairman and chief executive, described previous offers as ‘unsolicited and highly opportunistic’, which did not reflect the company's true value.”
Menzies Aviation has 25 000 employees, and among other subsidiaries, has Air Menzies International as part of the group.
