U.K.’s Menzies Prepared to Accept Latest Kuwaiti Approach

(Bloomberg) -- U.K. airport ground-handling specialist John Menzies Plc said it’s ready to accept a 560 million-pound ($763 million) takeover approach after its Kuwaiti suitor sweetened the proposal for a third time.

Agility Public Warehousing Co. is now proposing 608 pence a share in cash for the U.K. firm after starting at 460 pence, Menzies said in a statement Monday. There’s no certainty a formal offer will be made.

Menzies’ board voted unanimously to recommend the price to shareholders provided other terms are agreed following further talks. Agility’s National Aviation Services arm, which would combine with Menzies to make a larger group, has until March 9 to make a formal offer.

Menzies stock was priced just below 500 pence in early 2020, before the coronavirus pandemic dealt a blow to aviation and demand for support services. The company said previously that it was confident in the outlook for the industry and that its current strategy would help raise the stock price.

Shares of Edinburgh-based Menzies traded 0.7% higher at 587 pence as of 9:23 a.m. in London on Monday.

The stock surged 25% Thursday after Agility said it had entered into contracts to buy Menzies shares at 605 pence, which set a minimum for any offer for the whole company. It had amassed a 19%, as of Friday. 

(Updates with share price in fifth paragraph, stock purchases in sixth)

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