Northern Foods has postponed today’s (28 January) shareholder meeting to vote on a proposed merger with Greencore following a request from the Irish food group.
Investors in Northern were due to meet today to decide on proposals to merge the UK group with Greencore under plans announced by both companies in November.
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However, Greencore is facing rival interest in Northern from Ranjit Boparan, a shareholder in the UK firm and the tycoon behind poultry and fish giant Boparan Holdings.
Ten days ago, Mr Boparan tabled a takeover bid for Northern, which was accepted by the company’s board and throwing Greencore’s plans into uncertainty. Greencore has refused to disclose whether it will table a rival bid but, Northern said today, asked the UK group to adjourn its meeting to vote on the original merger.
Mr Boparan’s bid is unaffected by the postponement. He can now write to Northern’s shareholders offering the terms of his GBP342m (US$547.2m) cash deal.
Nevertheless, an adjournment gives Greencore time to return with a counter offer. Reports have suggested that the Irish firm is considering whether to submit an improved bid, although the company refused to be drawn on its intentions when contacted by just-food today.
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By GlobalDataGreencore shareholders had been due to vote on the merger at the company’s AGM today but a spokesperson told just-food that the resolution to vote had been taken off the meeting’s agenda.
In a statement following the AGM, Greencore chairman Ned Sullivan said that the board “continues to believe that a combination with Northern Foods to create Essenta Foods represents a compelling opportunity for value creation” for both Greencore and Northern shareholders.
However, he added: “The board recognises the importance attached by the Northern Foods Board to the certainty of cash value in their decision to change their recommendation.”
Greencore shares edged up 0.1% to EUR1.13 at 12:09am GMT today.
