4th Nov 2020 14:19
(Alliance News) - Premier Foods PLC on Wednesday confirmed it is in a process to sell its 49% stake in Hovis, after Italian firm Newlat Food Spa said it was holding out for exclusive talks to acquire the bakery brand.
Premier Foods said that a "sale process for a potential transaction" is ongoing, though there is no guarantee that one will be agreed. Premier Foods owns bread maker Hovis alongside Gores Group.
The statement from Premier came after Newlat confirmed its interest in Hovis, but said it does not want to partake in a bidding war.
"Newlat Food, while confirming its interest in the acquisition of the target, informed the counterparty that the negotiation will be resumed only in the event that the shareholders of Hovis grant, on the basis of the non-binding offer, an exclusive negotiation period to Newlat Food in order to be able to proceed quickly to the closing of an agreement," Newlat said on Wednesday.
However, Newlat may face competition from a UK private equity firm, Sky News reported on Wednesday.
Endless LLP is an advanced talks to buy Hovis, Sky News reported, and a deal may be agreed this week.
Premier Foods shares were 6.2% higher at 104.40 pence each in London on Wednesday afternoon.
By Eric Cunha; [email protected]
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