LONDON: Scottish firm John Menzies said it was in talks to sell its distribution business to British mail delivery firm DX Group, responding to calls by top investors to separate the unit from its airport services business.
DX Group proposed to pay £60 million ($74.8 million) in cash and issue of new ordinary shares, which would represent 80 per cent of DX’s issued share capital after the deal closes, the companies said in a statement on Friday. John Menzies’s shares rose as much as 11.2 per cent to 706 pence on the London Stock Exchange, touching their highest since November 2013.
The company has been under pressure to revamp its business as a string of warnings and departures of top executives drew criticism from three investors who advocated separating its aviation services and print media distribution units.
Activist investor Shareholder Value Management (SVM) took a 7 per cent stake in Menzies last year and urged the company to break up its businesses saying they would be worth more if split. — Reuters
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