D-Day for Boparan
Time is running out for Birmingham entrepreneur Ranjit Boparan if he intends to table an offer for Northern Foods. Boparan was the subject of a 'put or shut up notice' from The Panel on Takeovers and Mergers and has until today (21 January) to make an offer for the food manufacturer.
Leeds-based Northern, the owner of Goodfella’s pizzas and Fox’s Biscuits, is the subject of a takeover battle after Boparan, the owner of Harry Ramsden's, emerged as a rival to its proposed merger with Irish-based Greencore.
Boparan must make any offer today, in advance of Northern's shareholder meeting on 31 January when the Greencore offer will be voted on.
The involvement of Boparan has prompted speculation he will launch a £300m counter bid, although it has been estimated he will need to raise finance of approximately £700m to cover equity, debt refinancing, working capital and pension payments.
It was reported earlier this week that Boparan had been negotiating with Northern's pension trustees in a bid to secure their approval of his takeover.
To date, Boparan Holdings has not made a firm offer for Northern despite the December confirmation that it was at a preliminary stage in evaluating a possible cash offer for the business and had requested information.
Northern has consistently reiterated it continues to recommend the proposed merger with Irish-based Greencore to form Essenta Foods, despite the emergence of Boparan as a potential rival suitor.
Northern said the merger offered "substantial benefits" for its shareholders, customers and employees and will create a convenience foods business with a strong platform for further growth.
