Philipp Joeinig

NAS proposed to buy the firm at a price of 510 pence per share in cash.

The proposal follows a previous unsolicited approach from NAS regarding a possible all-cash offer at 460 pence per Menzies share. Menzies shares closed last night at 334p, valuing the company at £308m.

The firm said that its board had “carefully considered” the proposal together with its financial advisers Goldman Sachs but had decided to unanimously reject it.

The board concluded that the proposal is “entirely opportunistic, conditional and that the terms fundamentally undervalue Menzies and its future prospects.”

In a statement published yesterday, the board said it believes that Menzies is now well-positioned for the significant opportunities ahead as the aviation industry continues to recover from the COVID-19 pandemic.

Philipp Joeinig, chairman and CEO of John Menzies plc, said: “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.”

He added that Menzies continues to make good progress with strong performance across a number of service lines, which together with productivity gains, saw the Group finish last year strongly.

Mr Joeinig continued: “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.”

He concluded: “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.”