Premier Foods plays down Batchelors sale report

Mr Kipling and Bisto owner Premier Foods noted press speculation over the weekend about a possible sale of its Batchelors' brand to Nissin, saying it has made no changes to its strategy since the preliminary results last May and talks with Nissin are still at a very early stage.

In the statement, which followed a report in The Sunday Times suggesting it was in talks with Nissin to sell the Batchelors' brand for around £200m, Premier said its remains focused on its strategic objectives, including the reduction of the ratio of net debt to EBITDA below three times.

“On 29 June 2017 the company confirmed that, in line with good corporate governance, it regularly reviews options to deliver value for all its stakeholders. Such reviews do periodically involve discussions with third parties, including Nissin (with whom the company signed a co-operation Agreement on 23 March 2016). There is no current situation where discussions have gone beyond an exploratory stage.

“As a matter of normal good governance, the board continues to keep under review any options which could potentially add value for shareholders and other stakeholders, and accelerate the delivery of the board's strategic objectives, particularly with respect to reducing gearing.”

At 0900 GMT, the shares were up 2.5% to 42.40p.