Moves are underway to split print media and parcel logistics firm Menzies Distribution from its sister air cargo and baggage handling business Menzies Aviation.

Parent company John Menzies has appointed chairman Dermot Smurfit, who said that he will review the structure of the group in order to "maximise shareholder value".

"This will include looking at whether our two operating businesses are best placed to prosper while they are part of one group,” he added.

The move is in response to mounting pressure from shareholders to split the two businesses. In July German fund manager Shareholder Value Management, which has a 7% share in the Edinburgh-based business, told the company its investors would be better served if it demerged the two businesses. A similar call was made by another shareholder, Swiss investment firm Lakestreet Capital, last year.

Any move to split the company will take time. Smurfit said the situation was “complex, particularly with regard to our pension schemes”. The company had engaged specialist advisers, Smurfit said, adding: “I expect this work to take up to 12 months.”

Topics