Shareholder Value Management (SVM) also called for the baggage handler and newspaper distributor to nominate a new “independent” chairman to replace company veteran Dermot Jenkinson, who replaced Iain Napier at the helm in May.
Menzies has already said that Jenkinson, who has been on its board for three decades, has committed to the chairman’s role for the next 12 months and will lead the process to appoint a permanent successor to Napier.
SVM’s call for a shake-up comes as it said a fund that it advises, Frankfurter Aktienfonds für Stiftungen, has acquired a 7 per cent stake in Menzies, which has also faced pressure from Swiss investor Lakestreet Capital Partners.
SVM said: “As a direct result of the recent developments at the corporate governance level, SVM believes that the company – after two challenging years – is finally on the right track to take the appropriate actions to realise value for its shareholders under new leadership.
“Accordingly, SVM encourages the timely nomination of a new independent chairman and strongly urges the company to separate the Aviation business from the Distribution business, a move that would be immediately and significantly value accretive, and in the interest of all shareholders.”
Menzies, which is due to announce its half-year results on 20 August, said in May that it had drafted in advisers as it eyes a possible restructuring.
In a trading statement to coincide with its annual meeting, the group said: “The board is progressing its evaluation of the optimal structure for the group against the potential opportunities for expansion and acquisition in both divisions, as well as being mindful of its obligations to its pension scheme.
“We have therefore appointed additional pension advisers to work with our existing team and, following initial engagement with our pension trustees, we have begun to explore the various options. We intend to provide an update of the preliminary conclusions from this initiative by the end of the year.”