Premier Foods plays down Batchelors’ sale speculation
Shares in Premier Foods are up two per cent this morning after the company played down speculation that it has had initial discussions with one of its shareholders about selling its Batchelors’ brand.
The company confirmed in a statement this morning that it periodically had discussions with third parties including Japanese noodle company Nissin, which owns a 20 per cent stake in Premier. But it added that there were currently no discussions which had “gone beyond an exploratory stage”
“As a matter of normal good governance, the Board continues to keep under review any options which could potentially add value for shareholders and other stakeholders,” the statement added.
Shares were up two per cent in early trading.
This comes after the Sunday Times reported this weekend that Premier was in talks with Nissin to sell the popular Batchelors’ brand, suggesting that the price tag for the division could be £200m.
A sale could help to reduce Premier’s debt burden, which stands at more than £500m, and which analysts at shore Capital this morning branded a “millstone around the neck of the Group’s equity value”.
Batchelors’ has been one of Premier’s star performers, helping the firm to return to growth this year.
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