Business
Statement re Approach and Cooperation Agreement
Statement re Approach and Cooperation Agreement.
About this update from Premier Foods Plc
[{"type":"text","content":"\n \nRNS Number : 9965S Premier Foods plc 23 March 2016 \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY (IN WHOLE OR IN PART), IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF THAT JURISDICTION. THIS ANNOUNCEMENT DOES NOT CONSTITUTE A TAKEOVER OFFER OR AN OFFER OF SECURITIES.\n \n23 March 2016\n \nFor immediate release\nPremier Foods plc\n \nPremier Foods plc rejects approach from McCormick & Company, Inc. and announces Cooperation Agreement with Nissin Foods Holdings Co., Ltd.\n \n· McCormick approach significantly undervalues Premier's growth prospects and represents an insufficient premium to Premier's enterprise value\n· Investment-led strategy starting to deliver results\n· New strategic initiatives expected to accelerate growth trajectory\n· Cooperation Agreement with Nissin to create long-term value through strategic partnership of brands, markets and technology \n· Update on Hovis Holdings Ltd and Knighton Foods Ltd joint ventures\n· Board's expectations of Trading Profit for full year remain unchanged \n \nThe Board of Premier Foods plc (\"Premier\" or the \"Company\") confirms that it received an unsolicited, non-binding and highly conditional approach from McCormick & Company, Inc. (\"McCormick\") on 12 February 2016 regarding a possible offer for the entire issued, and to be issued, ordinary share capital of the Company at an indicative price of 52 pence in cash per Premier share. This approach was rejected on the basis that it significantly undervalued the Company and its prospects. The Board received a subsequent approach on 14 March 2016 with a revised possible offer for the entire issued, and to be issued, ordinary share capital of the Company at an indicative price of 60 pence in cash (the \"Indicative Price\") per Premier share (the \"Proposal\"). This approach has also been rejected on the basis that it significantly undervalues the Company and its prospects, and therefore the Board does not consider that the Proposal would be in the best interests of Premier and its shareholders.\nCommenting on the approach David Beever, Chairman of Premier, said:\n\"McCormick's Pro...