Boparan increases Northern stakes
Birmingham poultry tycoon Ranjit Boparan has increased his stake in Northern Foods with the acquisition of 22.4 million shares at his offer price of 73 pence per share.
The move means Boparan, whose £342m bid for Northern has been recommended by the food manufacturer's board at the expense of the proposed merger with Greencore, now holds approximately 11.4 per cent of the business.
Boparan had previously held a 6.6 per cent stake in Northern, a shareholding he has now almost doubled.
After Boparan's 11th hour £342m bid for the Leeds-based business was received, Northern's chairman Anthony Dobson said the Boparan offer was a "compelling opportunity" for shareholders to "realise a cash exit".
However, the market is waiting to discover if Greencore intends to return to the table with an improved offer.
Analysts expect that Northern, the owner of Goodfella’s pizzas and Fox’s Biscuits, will be the subject of a takeover battle despite Boparan's offer currently holding sway.
The Irish-based food manufacturer, which has hailed the synergies it believes exist between itself and Northern, has noted the attractiveness of Boparan's cash offer to Northern's shareholders and is pondering a sweetened deal.
Northern is one of the biggest suppliers of own-label products in the UK, with revenue of £977m last year.
At the close, Northern's share price had risen to 74p.
