Premier Foods Share Discussion Threads

[mreasygoing] 30/3/2016 08:10

Taken out on the cheap. Another British company sold out to Johnny Foreigner.

[chinese investor] 30/3/2016 07:29

This really is easy money !

[seball] 30/3/2016 07:27

Counter bid from Nissin coming. I reckon 75p a share. Hold on folks this is going to get very exciting.

[impvesta] 30/3/2016 07:22

"Anony Mous
30 Mar'16 - 07:07 - 19316 of 19317 0 0

New offer just in at 65p"

Yes:



I hope the board now engage properly with McCormick with the aim of extracting the best possible price for shareholders. Of course Nissin may also wish to have a say in the proceedings. I'm not sure at what stage they are allowed to counter bid if they so wish.

[hippo] 30/3/2016 07:15

Gavin Darby caught out again, but will still make a packet.Bye bye Premier for 65p........or will nissin want it for 70p :-)

[anony mous] 30/3/2016 07:07

New offer just in at 65p

[aldgatee1] 29/3/2016 19:16

Still of the view it's worth sticking with this one.

Short term holders have a profit, sure, but the Theoretical Ex Rights Price at time of Rights Issue in March 2014 was 82p or so and the management look to have that in mind.

Co is much better-positioned now than it was at that time. Management were big buyers around and after the Rights. Shares subsequently dragged down by supermarket problems (Lidl, Aldi, dividend cuts across the majors etc.) but those fears have latterly abated & true value should come through.

A lot of work to be done but much has already been achieved. We could be on the slow road to 150p in a couple of years (say 11p of earnings, 14x multiple). Would be a shame to sell the future to a corporate raider. I don't think it's unreasonable for a bidder to pay existing holders say half of the upside. Either that or clear off and let the company fall back on self-help.

[hippo] 29/3/2016 17:33

But nissin only bought their stake once the market had been informed, so no insider dealing.If they were entering into a strategic arrangement with PFD then they had to be informed.Will they get drawn into bidding themselves ?

[dins1249] 29/3/2016 17:27

Ashley Armstrong, retail correspondent
29 MARCH 2016 • 5:04PM
Premier Foods told Japan's Nissin Foods it had received an approach from American suitor McCormick before any of its existing shareholders and before the noodle maker bought a 17.3pc stake in the British food manufacturer, The Telegraph has learned.

The St Albans-based owner of Bisto and Mr Kipling sparked anger in the City last week after revealing it had rejected a 60p-a-share takeover offer from McCormick in favour of a commercial agreement with Nissin.

The offer, which was rejected out of hand by Premier's board, valued the business at £495m.

Within 24 hours, Nissin had bought a 17.3pc stake in Premier from private equity house Warburg Pincus.

Investors feared that Nissin’s stake building, which hands it a right to a board seat, would dissuade McCormick or any other bidder from making an offer for the full company.

However the revelation that Premier Foods told Nissin of the approach before disclosing it to existing investors will only further incense disgruntled shareholders.

A spokesman for Premier Foods said that after the board came to the decision that McCormick's offer significantly undervalued the company it moved "to accelerate the commercial opportunity".
"Nissin was aware of the approach from McCormick because it was essential before committing to the commercial collaboration. Premier Foods, believing the offer did not value the company, moved to pursue more value creating opportunities", a spokesman for the Mr Kipling maker told The Telegraph.

While Premier Foods was not responsible for Warburg Pincus' decision to sell its stake to Nissin, the Japanese buyer's motives to buy a stake in order to frustrate a takeover approach are now significantly clearer.

Nissin's co-operation agreement with Premier Foods only remains intact if the UK company remains independent.

Premier Foods disclosed the bid approach from McCormick and a co-operation agreement with Nissin on March 23.

Prior to Nissin taking a stake in the company Premier Foods said the two sides had agreed that if the Japanese company was to buy more than 15pc of the company it would not make an offer for at least six months.

However, this "no-bid" agreement is void if there is a firm bid by McCormick or a third party.

Analysts at Moody’s said that the potential co-operation agreement with Nissin “would be credit positive” for the UK group because it could boost its Sharwood’s Asian food and Batchelor’s Super Noodles ranges, which have not received as much investment under Premier’s strategy to focus on its Mr Kipling and Oxo brands.

Speaking to The Telegraph at the start of this week, Gavin Darby, the chief executive of Premier Foods, had sought to soothe investor unrest by suggesting that Warburg Pincus and McCormick had also held discussions and the private equity investor had opted for the 63p-a-share deal the Japanese firm was willing to offer.

"Just as much as it could have been a deal between Warburg Pincus and McCormick. I’m sure all three of them were involved.”
Gavin Darby, chief executive of Premier Foods


Mr Darby said “Warburg Pincus took the opportunity of selling their shares and chose to sell their shares to Nissin. Just as much as it could have been a deal between Warburg Pincus and McCormick. I’m sure all three of them were involved.”

However, it is understood that McCormick did not speak to Warburg Pincus at any stage. The discussion over McCormick's proposed bid was between its chairman, Alan Wilson, and David Beever, his opposite number at Premier Foods.

A person with knowledge of the situation confirmed that McCormick was not "at any stage offered the Warburg Pincus shares and nor did it take part in any discussions".

It is thought that the UK’s Takeover Panel may push Premier Foods to clarify this point after Premier Foods’ shares soared by more than 10pc to 57.3p today, following the Easter holiday.

[dins1249] 29/3/2016 17:22

Ashley Armstrong, retail correspondent
29 MARCH 2016 • 5:04PM
Premier Foods told Japan's Nissin Foods it had received an approach from American suitor McCormick before any of its existing shareholders and before the noodle maker bought a 17.3pc stake in the British food manufacturer, The Telegraph has learned.

Telegraph comments short while ago. Come on Regulators sort this out. How can one party be given unfair advantage. Cancel the sale to Nissin and let us have a fair playing field with McC.

[bad robot] 29/3/2016 16:01

Took all my chips off the table at above 58p. A very nice profit.

I prefer to crystallise this nice paper profit, I was hoping to jump at 60p spike did not happen, most probably it will spike now as I have sold.

Can't believe it's not trading at 63p


GLA

[zipstuck] 29/3/2016 13:01

PINCUS IN THE PINK IMO

[sportbilly1976] 29/3/2016 12:00

surely they would have known about that from the posted results before making an initial, and then an improved offer?

[zipstuck] 29/3/2016 11:59

Would not be surprised if McCormick bulk at the pension scheme deficit and leave Nissin holding the baby.

[sportbilly1976] 29/3/2016 11:36

call me a cynic, but would some of the existing II holders have pledged their stock to McC, but only at a certain price (say 70p for example)...and so are comfortable in buying currently given they expect a further, raised offer to be forthcoming?

[chinese investor] 29/3/2016 10:59

60p Imminent !

[sportbilly1976] 29/3/2016 10:58

the buying this am, and the current share price all suggests the market fully expects this to go over 60p (and indeed the 63p paid by Nissin)

[sportbilly1976] 29/3/2016 09:59

I feel as though McCormick will make a final offer - enough to tempt Nissin to sell their 17% stake & for McC to gain complete control - 10% return in a couple of weeks should be sufficient so I'll say 70-75p max

[seball] 29/3/2016 09:19

Increased bid from 60p to 75p a share bid from McCormick imo

[cashmachine2] 29/3/2016 08:53

Well Nissin paid 63p last week per share for their +17% stake and McCormick have offered 60p for their second offer and stated within that offer after due diligence they maybe prepared to offer me and we are trading 10% below the 60p offer and 15% below Nissins purchase price.I see McCormick offering in the 70's just to get the deal put to bed (IMO).

[1i1i1i] 29/3/2016 08:19

Shall I top slice?

[chinese investor] 29/3/2016 08:07

Very Soon !

[chinese investor] 29/3/2016 07:55

60p Soon !