Premier Foods major shareholder Nissin urged to sell or launch takeover - report
Premier Foods’ [LON:PFD] biggest investor, Nissin Foods [TYO:2897] of Japan, has been urged by another shareholder to exit its stake or launch a takeover bid for the UK-based business, The Sunday Times reported. The unidentified top-10 Premier shareholder said Nissin’s ownership of a 19.7% stake is blocking any prospective sale of the British food group.
However, sources with close links to Premier said Nissin’s presence on the share register is an aid to Premier’s ambitions for growth, the item reported. The Japanese group revealed its Premier holding last year, the same day Premier turned down a bid from McCormick [NYSE:MKC], which went on to offer 65p per share before abandoning the takeover attempt, the report noted. Sources at the time said Nissin’s stake was to blame for the collapse, the report stated.
Premier has an approximately GBP 399m (USD 491m) market capitalisation, with its shares trading at 40.75p by Friday’s close, the report noted.
The original item appeared in The Sunday Times, Business section, page 3