The board of Premier Foods received an unsolicited approach from McCormick & Company for the share capital of the company at an indicative price of 52 pence in cash per Premier share.
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This approach was rejected on the basis that it significantly undervalued the Company and its prospects.
The board received a subsequent approach with a revised possible offer for the entire share capital of the company at an indicative price of 60 pence in cash.
This approach has also been rejected on the basis that it significantly undervalues the company and its prospects, and therefore the board does not consider that the proposal would be in the best interests of Premier and its shareholders.
Commenting on the approach David Beever, chairman of Premier, said: "McCormick’s Proposal represents an attempt to capture the upside value embedded in Premier’s business that rightfully belongs to Premier’s shareholders.
"The Proposal fails to recognise the value of Premier’s performance to date and prospects for the future, including the strategic plans we have to accelerate growth.
“McCormick's Proposal significantly undervalues the business and the Board has unanimously decided to reject it."
The board has now agreed to enter into a co-operation agreement with Nissin Foods Holdings Co.
With annual revenues of around $3.8 billion and operating profit of around $216 million, Nissin, which invented the world’s first instant noodles in 1958, operates in 19 different countries, spanning Asia Pacific, the Americas, Europe, Middle East and Africa.
It is a global leader in instant noodles holding the number one or two positions in key markets, including Japan, the United States and Brazil and has a growing presence in chilled and frozen foods, cereal-based confectionery and yoghurt beverages in Japan.
Nissin’s presence in Europe includes Hungary, Germany and Spain, with brands such as Cup Noodles, Soba and Top Ramen.
It also benefits from a state-of-the-art global research and innovation centre in Japan that develops more than a thousand new products that are distributed around the globe every year and has significant expertise in starch technologies, sodium reduction and production techniques. ■
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