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Britain's Menzies welcomes sweetened $762 million proposal from Kuwait's NAS

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By Reuters

-John Menzies said on Monday Kuwait’s National Aviation Services (NAS) has sweetened its takeover proposal for the British airport services company to about 559 million pounds ($761.75 million).

After rejecting three proposals from NAS, the Edinburgh-based company said it is willing to back the latest potential offer of 608 pence a share, subject to certain terms.

NAS, a unit of Kuwait’s Agility Public Warehousing Co, has built its stake in London-listed Menzies to about 19% by buying shares at 605 pence apiece in the past week.

The Kuwaiti firm will not raise its proposal unless a third party tables an offer for the British company, Menzies said, adding it would now allow the Kuwaiti firm to access its management and due diligence information.

Menzies is among the biggest providers of fuelling, ground handling and maintenance services, operating in around 37 countries globally. It had suffered heavy pandemic-driven losses in 2020 but has since recovered on cost controls and restructurings.

NAS, which offers airport services in emerging markets, believes that a combination with Menzies would allow both groups to expand into more markets and benefit from scale as the aviation industry bounces back from the pandemic.

($1 = 0.7338 pounds)