Agility, one of the largest logistics firms in the Middle East and North Africa, has acquired a 13.2 per cent share in UK-based aviation company John Menzies, the holding company of Menzies Aviation, for £73.4 million ($100m).
The acquisition is being done through the Kuwaiti company's subsidiary, Agility Strategies Holding, it said on Thursday in a statement to the Dubai Financial Market, where its shares are traded.
Up to 12.1 million shares in Menzies are being acquired from "various different sellers" at a price of £6.05 per share, the statement said.
"Once executed, this will be reflected in the company’s financials as per the accounting treatment approved by the auditors."
Agility, which has yet to report full-year earnings for 2021, posted a sharp surge in its third-quarter net profit after an exceptional gain from the sale of its logistics unit to Danish company DSV Panalpina.
Net profit for the three months ending September 30 surged to 926.9m Kuwaiti dinars ($3,065), up from 15.3m dinars in the same quarter in 2020.
Third-quarter revenue rose 30.2 per cent from a year ago to 65.8m dinars.
The acquisition of John Menzies is expected to complement the operations of National Aviation Services (Nas), a Kuwait-based airport services and ground-handling company owned and backed by Agility.
Nas is present in more than 55 airports in the Middle East, Africa and South Asia, and manages more than 50 airport lounges, its website says.
The combination of the two businesses "has a strong strategic and financial rationale" since they share "highly complementary geographical footprints and product portfolios, with minimal overlap", Nas said in a previous statement.
The acquisition comes after Nas made two proposals to Menzies, which were rejected by the UK company.
Shares of London-listed Menzies rose 28 per cent on Thursday after the news.