Key points:
- Menzies common equity and preference shares are now delisted
- The bid has succeeded, there is no market left
- Shares need to be tendered into the bid, that's their only home now
The John Menzies (LON: MNZS) bid has now gone through. Or at least that it has gone through enough to cancel the listing of those MNZS shares. This does mean that for any holders now there's just nowhere to sell them. It's necessary to accept the bid terms if you haven't already done so. There might be a grey market out there but we rather doubt it as there's nowhere else anyone else could sell Menzies shares either. It's the bidders or no one.
As we pointed out about the Menzies bid the terms were:
The John Menzies plc (LON: MNZS) share price edged 4.68% higher after announcing that it would accept the final offer from GIL International Holdings V Limited (Bidco), valuing the company at £571 million, with Bidco buying each Menzies share for 608p.
Investors familiar with the deal will remember that Bidco made its initial offer on 8 February 2022, when the John Menzies share price was trading at 335p. Accordingly, the offer price also represents a 107% premium to the Volume Weighted Average Price of 294p for each Menzies Share during the three months to 8 February 2022.
Given the fall in market prices since February GIL might well regret having paid such a full price but that's the way bids do sometimes go. The underlying markets change even if the industrial logic of the bid or combination doesn't. This is also a rather large benefit to Menzies shareholders of course.
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As the announcement says:
Further to the announcement of Menzies and GIL International Holdings V Limited (“Bidco”) on 4 August 2022 that the Ordinary Share Scheme for the acquisition by Bidco of the entire issued and to be issued ordinary share capital of Menzies not already owned by Bidco and the Preference Share Scheme for the acquisition by Bidco of the entire issued and to be issued preference share capital of Menzies had each become effective in accordance with their respective terms,
As a result of this both the common equity and the preference shares (the 9% perpetuals) are delisted. Which does leave open the question of what should anyone still holding MNZS do about it? Well, the delisting means that there's no market – no regulated and liquid market that is – left. Given that the bid is unconditional there will be no one else barging in to offer a better price. So there's no grey market of any size. There isn't anywhere to sell the shares other than to the bidders that is.
It is, of course, possible to do nothing. But that would mean becoming a minority shareholder in a private company which isn't where anyone really wants to be. It's also true that with accceptances over 90% Bidco will be able to force sales at the bid terms. So, there's just nowhere else to go.
Menzies shares need to be tendered into the bid. If you don't know how to do this your broker will be able to advise.