Belfast Telegraph

John Menzies break-up is considered

By Kalyeena Makortoff

John Menzies is exploring a potential break-up of its distribution and aviation business amid renewed shareholder pressure.

Chairman Dermot Smurfit said in the company's interim report that he was looking at whether the two businesses "are best placed to prosper while they are part of one group".

The Irish industrialist explained that the situation was complex, requiring specialist advisers to consider the structure of existing pension schemes.

Activist investor Shareholder Value Management started to push for a break-up shortly after buying 7% stake in John Menzies in July.

It marked a renewed push towards breaking up the company, which currently deals with two distinct businesses - one in newspaper and magazine delivery, the other in plane cargo and baggage handling. Lakestreet Capital made similar calls for a company split last year.

Belfast Telegraph