ABF has dropped the price of kingmill and selling at considerably lower price at the likes of tesco and sainsbury, probably at a loss just to kill hovis business. In a year's time hovis could be being bought out of administration by some-one, can't see much for premier in this other than no more money to fork out.
Mmmmm, I'm wondering if Hovis could be a key factor in PFD's future valuation. If it could be sorted out and made profitable it could be worth enough to knock a chunk off PFD's debt. Would be nice to get an update on its progress ?
My source is telling me that Hovis are back in profit after some very tight management by Gores, but Premier may well hang on to their 49% for another year......unless of course they are overtaken by other events.
I would imagine they would offer circa 65p initially- various major shareholders encouraged conversations when mcc offered that last year - but then it would be a question of how that is perceived by those big shareholders based on latest info where on one hand the balance sheet looks better to a tune of around 120m (less debt, less deficit ) while trading had been worse than expected but we could have indicative sales - good or bad next week if the board are put in such a position.
Other thing to bear in mind is that hovis minority's share could be sold at any time from next month as the deal with gores started on April 2014 with a 3 year minimum hold - so there could and I stress could be some action there very soon
GD has done nothing for PF in the last year and everything for Nissin. He has been working for them over the last year, doing for them, what they would have done with PF, if they had bought the lot last year. The role of Oasis, is in sync with what they are known for, active investors. Quite simply, if it is confirmed next week that it is Nissin, coupled with Oasis becoming vocal, in practical terms, you may get more than 65p very soon, without a full takeover. Hate to say it, but last year 75p was touted as the price a deal may be done, it is exactly the price we may see a full bid at.
I agree with you. I also believe that last March Nissin would have informed GD of their intentions with PF, in the event of a full takeover. Naturally, they would have wanted to sell off parts of the company, which GD is probably doing for them now. If GD had not allowed them to buy the ''blocking stake'' they may have got into an expensive bidding war with Mc Cormick. They may well have picked up nearly 30% of the company for under 65p. Of course in the meantime, GD has also ''loaded up''
If I was a betting man ! I would put money on it being nissin so i am genuinely interested to understand why you think that would be neutral for the share price.
I could only see that as a precursor to a full takeover - otherwise they will have spent the best part of 150m quid for a piece of a business over which they have no exec control and only as much influence as oasis.
Better for them to takeover and be able to direct the company methinks.
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