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Er latest RNS, NAS still claiming that 510p is fair value. Ummm, it's a big NO from me.
NAS complaining they dont have full disclosure yet offered 510p!! Lol
MNZS have huge contracts about to be signed, standby for RNS for some of the largest aviation logistic contracts ever signed...and MNZS return to pre-pandemic levels much earlier. The MNZS board are mauling NAS, this is wild!!!
510p no way. Lets start with a 7.
"NAS has today again requested information access and dialogue with management. NAS looks forward to engaging with Menzies' shareholders in parallel."
NAS are not giving up, and have NOT explicitly ruled out a higher offer. However I tend to agree with them that 510 is a pretty fair offer. The share price last hit that level almost exactly three years ago. and then there were an awful lot fewer shares in circulation. Management may get too greedy here.
MNZS has a number of loyal institutional and major private holders who hold a significant chunk of the business, so suspect they will be informing the BoD as to agreement price! I have no idea how this will play out but suspect if no other bidder declares shortly, bid maybe withdrawn. The 510p does not fully value the potential future earnings of MNZS imv.
Some directors will get massive LTIP rewards if this stays independent, so this may also colour their judgement. To me 510 is a very decent offer, and I would be surprised to see another, higher bid. We may just have to hold on.
The MNZS board are not even speaking or communicating to NAS. NAS are negotiating against themselves.
MNZS is not for sale. Certainly not for 510p
2021 Results published soon.
????
It does rather seem like negotiation by megaphone, given today's missive from MNZS. Or it may just be a pitch to maximise the price?
I agree, I was not sure that Menzies were going to sell out, but after the last rns's from each party it is clear that it is just a public negotiation that almost inevitably will end in a sale.
Yesterday NAS-
'Menzies' board and management team have chosen not to engage with NAS or share any information to corroborate their differing views on the company and industry, and therefore valuation.'
Today Menzies-
'In addition, the NAS Proposal fails to take account of the execution of Menzies' strategy and the significant potential value creation driven by:
· The full impact of management actions not yet reflected in Menzies' valuation;
· The return of underlying volumes to pre-pandemic levels with Menzies well positioned to benefit as a global player in a market with proven structural growth; and
· The pipeline of higher margin opportunities that we believe will generate approximately £80 million of net new annualised revenue from commercial opportunities and approximately £150-200 million of new revenue over the short to medium term from several business development opportunities.'
So it depends on what value Menzies and their key shareholders thinks this adds to the price.
The board wearing their finest ramper hats ..... and I'm good with that tbh. There has to be more in this! ...... as long as they're realistic and not merely trying to stay in for purely selfish reasons. Though trying to orchestrate events here ultimately it's not the board that'll determine things here though. Currently offering silver let's hold for gold ...... 18crt! ;-) GLA
The board are absolutely correct.
NAS uses a EBITDA value multiple of 6.4x to get to 510p per share.
As per page 8 of the defense pack the industry media is an EBITDA multiple of 9.8x which is equal to 780p per share (note Swissport which was in a much worse state was bought from its Chinese owners at 10.9x multiple)
Also MNZS suggest the NAS offer is conditional.
So absolutely no way is this offer being accepted.