Boparan faces D-Day
Northern Foods shareholders have until 1pm today to accept Birmingham entrepreneur Ranjit Boparan's cash offer of 73 pence per share, as the clock ticks down on the possibility of a counter offer by Irish food manufacturer Greencore.
The chicken magnate's £342m bid for Northern has been recommended by the food manufacturer's board at the expense of the previously recommended merger with Greencore.
Boparan hopes to combine Northern with his 2 Sisters Food Group and create a £2bn turnover business.
Since tabling his offer, Boparan has increased his stake in Northern 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.
Greencore was thought to be still eyeing a deal with the owner of Goodfella’s pizzas and Fox’s Biscuits, and is rumoured to have been in discussions with private equity groups in recent weeks.
The Irish business has been granted access to additional due diligence information by Northern "ahead of a possible offer".
After Boparan's £342m bid for the Leeds-based business was received, Northern's chairman Anthony Dobson said the offer was a "compelling opportunity" for shareholders to "realise a cash exit".
Northern is one of the biggest suppliers of own-label products in the UK, with revenue of £977m last year.
