John Menzies plc (Menzies) today announces that it has agreed terms
with Sandoval Group to dispose of Menzies 50% stake in Talma Menzies
SRL an aviation services business based in Peru.
Menzies will receive disposal proceeds of £10.3m cash. Menzies will
continue to work with the Sandoval Group and have signed a two year
franchise agreement that will make the disposal earnings neutral.
Talma Menzies SRL had gross assets of £1.4m and profit before tax
attributable to those assets was £1.7m for the year ended 29 December
The sale proceeds will initially be used to pay down debt but Menzies
will look to re-invest the funds into our Aviation division as it
continues its rapid expansion plans in other parts of the world.
Craig Smyth said:
"This represents a strategic withdrawal from the Peruvian market. We
have enjoyed a profitable partnership with the Sandoval Group and
wish them well for the future as they look to adapt the business
model to the changing local business environment and diversify from
the core aviation services market.
We remain focused on our strategy of creating regional densities with
attractive airlines in attractive markets. I look forward to using
the proceeds from this venture to grow our business further during
the remainder of the year."
For further information contact:
John Geddes, Company Secretary, John Menzies plc 0131 459 8180
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