It has more twists and turns than your average soap opera, the Question remains.....Will Northern Foods accept the offer from Ranjit Boparan, or will they stick with Greencores original bid?
The board of Northern Foods urged shareholders to reject Greencore’s bid and instead plump for a 73p/share cash offer from chicken tycoon Ranjit Boparan.
Greencore, meanwhile, issued a statement stressing that it continues to believe in the merits of a merger with Northern Foods and will “consider its options and as part of this process intends to seek the views of both Greencore and Northern Foods shareholders”.
The Boparan offer – tabled at the eleventh hour - is just under the suggested range of 75-80p per share but this is reported to be " no deal-breaker"
A cash and shares proposal is considered to be the most likely next move from Greencore, which has some time to work out what to do next.
Boparan said adding his chicken (Two Sisters Food Group) and fish empire (Fish works) to Northern Foods’ prepared foods, biscuits and frozen pizza business would make a £2bn+ turnover company that would “look to develop its strategic partnerships with its major food retailing clients”.
He added: “We look forward to working with the experienced Northern Foods team and combining our skills in product innovation and customer partnerships to create a larger business with enhanced prospects.”
While there are more obvious synergies arising from a tie-up with Greencore, Northern Foods insisted that working with Boparan had a “clear strategic rationale”.
They added: “The UK food industry has continued to consolidate and by participating in this consolidation, the Boparan Group and Northern Foods will continue to strengthen their competitive positions.
“The combined group will be able to build on the complementary strategies of both businesses from a position of significantly enhanced scale and efficiency and to take advantage of top-line growth opportunities through innovation and brand investment, whilst also delivering cost savings to enhance efficiency and competitiveness.”
No comments have been made.