Business
Premier Foods plc issues shareholder circular
Premier Foods plc issues shareholder circular.
About this update from Premier Foods Plc
[{"type":"text","content":"\n \nRNS Number : 2018T Premier Foods plc 02 July 2018 \n\n \n \n \n \n \n \n \n \n2 July 2018\nPremier Foods plc (the \"Company\")\n \nPremier Foods plc issues shareholder circular\n \nPremier Foods plc announces that it has today issued a circular to shareholders pursuant to Section 314 of the Companies Act 2006 that contains, amongst other matters, a statement by Oasis Management Company Ltd and Oasis Management (Hong Kong) LLC on behalf of Oasis Investments II Master Fund Ltd, which is the beneficial owner of 9.34% of the Company's shares (each or together, as the context requires, \"Oasis\").\n \nBackground\n \nOn 21 June 2018, the Board announced that it had been made aware that Oasis intends to vote against the re-election of Gavin Darby as Chief Executive Officer at the Company's AGM on 18 July 2018 and was encouraging others to do the same. \n \nSince then, Oasis has made a number of highly critical comments about Premier Foods and Gavin Darby. On 26 June 2018, the Board received notice that Oasis wished to exercise its right to request the Company to circulate to all shareholders, on its behalf, a statement in the form provided by Oasis\n \nThe Board's response \n \nThe Board rejects the various statements made and sentiments expressed by Oasis to date. The Board has confidence in Gavin Darby and firmly believes that he and the Management Team are best placed to run the business and execute the Company's strategy. \n \nGavin Darby became the Chief Executive Officer of Premier Foods in February 2013 at a time when the Company was in serious financial difficulties. It had net debt of nearly £1 billion, which was a ratio of 6.0x Net debt to EBITDA. On the day of his appointment, the Financial Times stated that Gavin Darby faced \"a Herculean Task\".\n \nSince then, Gavin Darby has been successfully transforming Premier Foods throughout a challenging industry back-drop by undertaking significant cost and efficiency initiatives, properly integrating the businesses which had previously been acquired, introducing modern sales and marketing processes and establishing positive relations...