British food group S Daniels has recommended at its extraordinary meeting today that its shareholders support a plan to raise new equity capital of more than £10m from Singapore Food Industries (SFI).
The money will be raised by the sale to SFI of 44.4m shares, a 26% stake in Daniels, a deal which was originally announced last month. By underwriting an open offer of 5.58m shares, or 3.3% of the capital, SFI will be investing in total up to £10.5m for a stake of up to 29.9% and the ability to nominate two non-executive directors.
Daniels, which also controls New Covent Garden Soup, received an £12m offer from an overseas company for its Johnson Juice business, which supplies fresh fruit juice to hotels and delicatessens. The company warned shareholders however that there is “an inherent uncertainty” in the offer because of certain contractual conditions.