LONDON--Investment group Shareholder Value Management AG has bought 7% of the shares in John Menzies PLC (MNZS.LN) and added its voice to calls for the company to split its aviation and distribution businesses.

SVM Monday said it "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."

It also called on John Menzies to appoint a new chairman.

Another John Menzies shareholder, Lakestreet Capital Partners AG, last year said the company should consider splitting its two businesses because they are "non-synergistic."

Edinburgh-based John Menzies, which used to be a well-known high street newsagent chain before selling its retail business to WH Smith PLC (SMWH.LN) in 1998, distributes newspapers and other products and also has a passenger and cargo aviation services business.

Shares at 0714 GMT, up 9 pence, or 1.6%, at 564 pence valuing the company at GBP346.2 million.

Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter: @RoryGallivan

(END) Dow Jones Newswires

July 04, 2016 03:35 ET (07:35 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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