UPDATE: Northern Foods Receives Info Request From Boparan
December 22 2010 - 4:50AM
Dow Jones News
Northern Foods PLC (NFDS.LN) said Wednesday that it had received
a letter from Boparan Holdings Ltd., headed by a British chicken
tycoon, requesting access to information about the company,
although an offer hadn't been made and Boparan's intentions were
unclear.
The U.K. food producer, which has a market capitalization of
GBP304.6 million, is in the midst of an all-share merger with
Ireland's Greencore Group PLC (GCG.DB). That deal already has been
approved by the board. Shareholders will vote on that merger on
Jan. 31.
"Shareholders should be aware that there is no certainty that an
offer will be made nor as to the terms upon which any such offer
may be made," Northern Foods said in a statement about Boparan's
approach.
The Daily Telegraph reported Wednesday that tycoon Ranjit
Boparan is planning a GBP300 million hostile bid for Northern
Foods. He already owns 6.6% of the company.
Northern Foods produces ready meals, sandwiches, salads and
chilled pizzas for U.K. supermarkets, including Tesco PLC (TSCO.LN)
and Marks & Spencer Group PLC (MKS.LN), and produces its own
branded products including Fox's biscuits and Goodfella's and San
Marco pizzas.
Greencore produces prepared meals under the Weight Watchers and
other brands, chilled sauces and soups, cakes and desserts, and
sandwiches, prepared salads and sushi.
The two companies plan to combine in a merger of equals to
create a business called Essenta Foods, which will be headquartered
in Dublin with an operational center in Yorkshire, England.
"The board of Northern continues unanimously to recommend
shareholders to vote in favor of the proposed merger," the company
said.
Greencore echoed Northern Foods' comments.
"The board of Greencore continues to believe that the
recommended all-share merger of Greencore and Northern Foods to
form Essenta Foods represents a compelling opportunity for value
creation for both Greencore and Northern Foods shareholders,
through the creation of a business with real scale in the industry
and substantial synergies," it said.
At 0920 GMT, Northern Foods' shares traded up 5 pence, or 7.5%,
at 65 pence. The stock has gained 6.5% in value since the start of
the year.
-By Patricia Kowsmann, Dow Jones Newswires; +44(0)207-842-9295;
patricia.kowsmann@dowjones.com
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