Activist investor takes 7 pct stake in John Menzies

LONDON, July 4 (Reuters) - British distribution and aviation company John Menzies (LSE: MNZS.L - news) must split its businesses and hire an independent chair, German activist Shareholder Value Management said on Monday.

Frankfurt-based 1.7 billion euro ($1.89 billion) Shareholder Value Management has purchased over 7 percent of John Menzies through sub-fund Frankfurter Aktienfonds für Stiftungen.

"The sum of the values of the two businesses, taken separately, far exceeds the current market price," Shareholder Value Management analyst Gianluca Ferrari said.

Menzies' largest investor, Kabouter Management, and Swiss investment firm Lakestreet Capital Partners last April issued separate statements saying Menzies' operational set-up caused its stock to be undervalued.

John Menzies did not immediately return a request for comment. (Reporting by Maiya Keidan and Esha Vaish; editing by Simon Jessop)