NAS, the Kuwait company that proposed to take over UK aviation services provider John Menzies, has defended the £468m bid, saying it had taken into consideration Menzies’s debt levels and ability to generate free cash flows.
“We have made an attractive offer that we urge Menzies’ shareholders to consider carefully. Our offer represents a 76 per cent premium over Menzies’ share price just over a week ago,” said NAS’s chief executive Hassan El-Houry this morning.
“In our view, the fundamentals of Menzies and of the industry as a whole are unlikely to change substantially, notwithstanding cost-cutting measures by Menzies.
“Let’s be clear: even as air travel recovers, airlines will look to contain costs with their airport service providers.”
El-Houry’s comments come a day after the Edinburgh-based handling provider snubbed the £468m proposal, saying it undervalue the company’s worth, City A.M. reported.
“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 Menzies’s chief executive Philipp Joeinig.
“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.”