Rights result for John Menzies

Oct (HKSE: 3366-OL.HK - news) 28 (IFR) - John Menzies (LSE: MNZS.L - news) has reported 92.9% take-up for its £75.2m rights issue that will be used to part-finance the US$202m acquisition of ASIG from BBG Aviation, which it hopes will strengthen its position in the global aviation services market.

Established in 1833 as a bookseller and stationer, John Menzies now provides ground and cargo handling services at airports through its Menzies Aviation, with Menzies Distribution delivering newspapers, magazines and print products.

The acquisition of ASIG is funded by the rights issue and a new debt package comprising a US$250m term loan and a £150m revolving credit facility, also replacing existing indebtedness.

The offering comprised 21.92m shares, or 35.7% of pre-money share capital, on a 5-for-14 basis at 343p, a 34.8% discount to TERP based on the September 15 close of 523.03p.

There were acceptances for 20.37m shares, with the rump of 1.54m shares sold on Thursday morning at 475p, the stock having opened at 490p.

Numis and Shore Capital were joint bookrunners. (This story will appear in the October 29 issue of IFR magazine; Reporting by Robert Venes)