Boparan sets Northern Foods deadline
Northern Foods shareholders have been given until 2 March 2011 to accept Birmingham entrepreneur Ranjit Boparan's cash offer of 73 pence per share.
The poultry tycoon's £342m bid for Northern has been recommended by the food manufacturer's board at the expense of the previously recommended merger with Irish food manufacturer Greencore.
Since tabling his offer, 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. He now holds approximately 11.4 per cent of the business.
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".
At the request of Greencore, a crunch Northern Foods shareholder meeting on 31 January to vote on the merger was adjourned at the last minute.
The market is waiting to discover if Greencore intends to return to the table with an improved offer for Northern, the owner of Goodfella’s pizzas and Fox’s Biscuits
Northern is one of the biggest suppliers of own-label products in the UK, with revenue of £977m last year.
