News / NAS urges Menzies shareholders and management to consider bid

14/02/2022

Agility’s cargo handler National Aviation Services (NAS), is not going to give up on its bid to take over Menzies.

It has issued another statement, calling on Menzies management to engage – but crucially, is not upping its bid from 510p per share, “a full and fair value” and a “compelling opportunity for Menzies shareholders”.

Noting both NAS and Agility’s “deep expertise in airport services” and its “financially disciplined approach”, it said its offer reflects Menzies revenue and margin forecasts.

But, it added: “Menzies’ board and management team have chosen not to engage with NAS or share any information to corroborate their differing views on the company and industry, and therefore valuation. NAS sees no reason to change its view on valuation…”

It called for access and dialogue with management and said it looked forward to “engaging with Menzies’ shareholders in parallel”.

Hassan El-Houry, NAS chief executive said: “We made a compelling offer that represents a 76% premium to the company’s share price less than two weeks ago. Our view is that Menzies has a strong brand legacy with a geographic presence that is complementary to NAS, but as operators ourselves, we also see a sector facing a number of challenges and a company that lacks the balance sheet to thrive. Unfortunately, Menzies’ management has not meaningfully engaged in a way that changes our view.”

Menzies has not issued any further statement – but appears to be renewing its cargo team. It has advertised for two vice presidents cargo – for Europe, and for the Americas, based in Miami – roles which would be on the cargo executive team and reporting to executive vice president cargo, Robert Fordree. The Europe job must be applied for before February 20. Previous VP cargo Americas Peter Kelly left in November 2020 after just 11 months.

Menzies’ share price is currently trading at about the 466p mark. We could be in for the long-haul on this story. Keep an eye on The Loadstar Premium this week for an analysis of the proposed deal.