Icelandic food group Bakkavör has acquired a 10.27% stake in UK fresh prepared food group Geest, and said it may increase its stake in the future.

“Bakkavör has no present intention of making an offer for Geest and may increase or decrease its shareholding in the future. The group is bound by the regulations of the London Stock Exchange and cannot make an offer for Geest in the next six months,” the company said.

Ágúst Guðmundsson, executive chairman of Bakkavör, said the investment in Geest is in line with the group’s plans to invest further in the fresh convenience food market.

The Icelandic company already operates production facilities in Birmingham and London, producing ready meals, ethnic snacks, meal accompaniments, fresh dips, dressings and sauces.