>>> Premier Foods in talks with Nissin Foods over potential sale of Batchelors b

Premier Foods in talks with Nissin Foods over potential sale of Batchelors brand; Credit Suisse advising Premier, UBS advising Nissin

Premier Foods [LON:PFD], a UK-based food company, is in discussions with its largest shareholder Nissin Foods[TYO:2897] about a possible sale of its Batchelors brand to the Japanese food company, The Sunday Times reported.
The newspaper cited a source close to the situation who said Premier Foods shareholders would support a sale of the soup and noodles brand but added that Premier chief executive Gavin Darby is not in a hurry to sell as doing so would leave the way clear for Premier to be broken up.
\It is thought that the possible disposal is a result of a review of strategic options conducted for Premier by Credit Suisse, the article said. The investment bank UBS is advising Nissin, according to the report.
The item noted talk that Batchelors has a valuation exceeding GBP 200m (EUR 225m).
Premier rejected a GBP 537m takeover offer from the Baltimore, Maryland-based spices company McCormick& Company, Inc. [NYSE:MKC] in 2016.
As previously reported, Premier warned on profits in January 2017, which prompted the activist hedge fund Paulson & Co to call for the board to begin a sale process for the company.
The item also noted activist investor Oasis Management has built a stake in Premier and secured a seat on the company’s board in March.
Paulson & Co, which holds a 2% stake in Premier, and Oasis, holder of a 9% stake, refused to comment on disposal plans, the report said.
Nissin holds a 20% stake in Premier, according to the newspaper.
Premier Foods's debt stands at GBP 535m, the article said. The company's pension funds are in deficit by GBP 421m, according to the report.
Premier Foods’ market capitalisation stood at GBP 347m at the close of trading in London on Friday, 12 January.
Background:
Premier Foods’ board faced criticism from another shareholder, Cape Wrath Capital, in July last year. Cape Wrath said Premier’s board did not have the requisite “skill set” to ensure shareholder returns, the Financial Times reported on 11 July 2017.
Cape wrath also accused the Premier Foods board of not acting in shareholders’ best interests in its rejection of McCormick’s 65p per share final offer in 2016 and urged the board to begin a sale process.