So long, McCormick: Premier Foods updates status from “it’s complicated” to “in a relationship” with Nissin
Premier Foods might have shrugged off overtures made to it by US spice giant McCormick, but it appears to be settling down with Japanese suitor Nissin instead.
The food group behind Mr Kipling and Bisto updated its status. No longer is the firm having to say "it's complicated"; as of this morning it is in a "relationship" with the instant noodle maker.
Under the relationship agreement, Nissin will have the right to appoint a non-executive director to the board of Premier "for so long as Nissin holds an interest in shares representing 15 per cent or more of the ordinary issued share capital of Premier".
Premier's share price rose 1.3 per cent in early trading.
McCormick gave up trying to woo Premier just over a week ago, prompting the latter's share price to plunge 30 per cent as investors hopeful for a marriage realised they'd have to wait a little longer to get a hat.
Premier had rejected the US firm three times.
Last month, Premier's chief executive Gavin Darby was criticised by shareholders over his handling of the takeover talks with McCormick. Standard Life Investments urged the board to engage with the US spices giant, whose last offer valued the company at £1.5bn.
McCormick also put out a statement last month saying it was "disappointed" with the way the board of Premier was "conducting itself".
This came shortly after Premier announced Nissin Foods had agreed to take a 17.27 per cent stake from US private equity firm Warburg Pincus.