Greencore Still Considering its Options on Northern Foods
In response to recent press speculation about whether or not it will amend its offer for Northern Foods, the board of Greencore has confirmed that it is still considering its options. Dublin-based Greencore, which is one of the UK’s leading convenience food groups, had proposed an all-share merger of equals with British rival Northern Foods. However, Boparan Holdings, controlled by chicken business entrepreneur Ranjit Singh Boparan, surpassed Greencore’s bid by making a cash offer of 73p a share for Northern Foods.
Boparan’s £342m offer has been recommended by the board of Northern Foods in preference to Greencore’s offer. Boparan has now built up an 11.4% stake in Northern Foods.
Patrick Coveney, chief executive of Greencore.
Greencore is reported to be seeking a partner to make an improved offer for Northern Foods with a cash element involved. It is understood to have held discussions on this matter with a number of major food groups, including Nestle.
Boparan has now posted its offer document, containing the full terms and conditions of the offer, to Northern Foods shareholders, together with the form of acceptance. Northern Foods’ shareholders have two weeks to respond to Boparan’s offer, although the deadline is expected to be extended should the 75% acceptance threshold fail to be reached. In anticipation of a counter-bid, Northern Foods shares have been trading at 75p.
