Boparan closer to Northern Foods deal

By Daily Mail Reporter
Updated:

 

Chicken tycoon Ranjit Boparan has edged closer to a takeover of Northern Foods, as a slew of investors rubber-stamped his bid by selling him their stock at the 73p-per-share offer price.

Ranjit Boparan

Ranjit Boparan: Northern's buyer has snapped up another 4.8% of the company

Boparan spent £16m to snap up a further 4.8% of the owner of Fox's Biscuits, taking his stake in the company to 11.4%.

The move will shore up his £342m bid against competition from Ireland's Greencore, which is considering whether to sweeten its own merger offer in response to competition from Boparan.

The entrepreneur - whose Two Sisters poultry empire supplies Tesco and Kentucky Fried Chicken - has agreed with the pension trustees of Northern (unchanged at 74.25p) to inject more than £15m a year to address a £142m deficit.

Greencore's offer includes a £15m-per-year plan to reduce the deficit, but Boparan was asked to contribute more because a merger with the Irish firm would create cost synergies that his takeover would not.

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