Agility now controls 19% of Menzies, intensifies takeover bid
Agility and NAS purchased an additional 5.3 million shares of Menzies at £6.05/share.
The board of Menzies had unanimously rejected the NAS proposal again earlier this week
Kuwait-based Agility Strategies Holding Limited, in concert with National Aviation Services (NAS), purchased an additional 5.3 million shares in Scotland-based Menzies plc, representing approximately 5.8 percent of the issued share capital of Menzies at 605 pence (£6.05) per share.
Consequently, Agility will hold over 17.4 million shares, representing approximately 19 percent of the issued share capital of Menzies, according to a statement issued by Agility.
Agility had earlier last week bought over 12.3 million shares of Menzies at 605 pence (£6.05). NAS has also confirmed that any firm offer for Menzies, if made, would be at a price not less than 605 pence (£6.05) per share. The deal, if it goes through at this price, values Menzies at approximately £555 million.
An offer of 605 pence (£6.05) per Menzies share, if made, would represent a premium of approximately:
*109 percent to Menzies' closing share price of 290 pence (£2.90) per share on February 2, 2022 (the date on which NAS made its second proposal to the Menzies board); and
*81 percent to Menzies' closing share price of 335 pence (£3.35) per share on February 8, 2022 (the day before Menzies entered an offer period).
"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," Hassan El-Houry, Chief Executive Officer, NAS had said after the earlier acquisition. "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."
The board of Menzies had unanimously rejected the NAS proposal again earlier this week, saying, when adjusted for permanent cost savings of £25 million, the NAS proposal implies a (pre-IFRS 16) EV/EBITDA multiple of 6.4x, which is significantly lower than achieved in comparable transactions over the last decade.
Menzies had reported an interim revenue of £415.8 million for six months to June 30, 2021 and a profit of £4.7 million after reporting a loss of £80.1 million in 2020.
NAS must now make an open offer or decline the offer by 5 p.m. on March 9, 2022.
Menzies stock has gained over 84 percent (£2.66) in the last one month to close at 581.84 pence (£5.81)yesterday. While the annual gain is 170 percent, YTD gain is 89 percent.