16th Sep 2016 06:17
LONDON (Alliance News) - John Menzies PLC on Friday said it has agreed to buy ASIG Holdings, a leading US-based commercial aviation services company, for USD202.0 million in cash from fellow London-listed BBA Aviation PLC.
Support service firm John Menzies plans to fund the acquisition through a GBP75.0 million rights issue of shares and a new debt package that is comprised of a USD250.0 million loan and a GBP150.0 million revolving credit facility, which will replace its existing debt facilities.
BBA Aviation said the deal should close by the end of this year.
ASIG is one of the largest independent providers of commercial airline services in the world. Headquartered in Orlando, Florida, it currently has operations in 88 locations across seven countries and is one of the market leaders for into plane fuelling and fuel-farm management services in North America and the UK, where it also has ground handling operations in high-traffic airports as well as small and medium sized airports.
The rights issue to be launched by John Menzies will be priced at 343.0 pence per share on the basis of 5 new shares for every 14 existing shares. That price is a 42% discount to the closing share price on Thursday of 592.00p.
BBA Aviation said the net proceeds of the deal will be around USD160.0 million and said its support costs will drop by USD20.0 million once the unit is offloaded.
By Joshua Warner; [email protected]; @JoshAlliance
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