Icelandic food company Bakkavor has increased its stake in Geest, but said it was not planning a takeover offer for the UK convenience food group in the near future.

Bakkavor said it has increased its stake in Geest to 20.03%, after taking a 10.3% stake in the company late last month.

"We have no plan to make an offer for Geest but we see the sector as a good investment opportunity," Lydur Gudmundsson, Bakkavor's chief executive officer, told Reuters. "It is based on our knowledge of the industry and we believe that the industry is going to continue to grow."