Shares in aviation company Menzies soared on Wednesday after the group rejected what it called a ‘highly opportunistic’ approach from a Kuwaiti rival.
Menzies received 510p per share cash offer which they said undervalued the company and does no reflect their propsects.
Menzies had previously rejected a 460p from Kuwaiti company National Aviation Services Holding. Menzies shares rose 36% to 456p as they unanimously rejected the bid.
“The Board of Menzies has unanimously rejected this unsolicited and highly opportunistic Proposal, which we believe does not reflect Menzies’ true intrinsic business worth or its prospects,” said Philipp Joeinig, Chairman and CEO of John Menzies plc.
“Menzies continues to make good progress with strong performance across a number of service lines, which together with productivity gains, saw the Group to finish last year strongly”
“This strong performance and momentum in 2021 has continued in 2022 with further contract wins and renewals alongside the continued recovery of global flight volumes. The Board remains fully confident in the recovery and outlook for the global aviation services industry as it returns to pre-pandemic trading levels and benefits from long term structural growth drivers. The Board believes the strong portfolio mix, positioning of Menzies and the ongoing execution of Menzies’ strategy will create significant value for shareholders in the near and medium term.”
Menzies currently has a market cap of £418m and has announced a number of new contract wins in recent months.