Premier Foods could sell brands to appease its shareholders | Business

Premier Foods said that "nothing came out of the table," including the sale of some parts of the business, before a showdown with militant investors who are trying to oust the Chief of the Executive, Gavin Darby

. Batchelors admitted that he needed to accelerate his turnaround plans under pressure from his second largest shareholder, Oasis Management.

Darby is facing a potential shareholder rebellion led by the Hong Kong hedge fund, which is trying to dismiss him on Wednesday.

Speaking in advance, he said the public row could help Premier find potential buyers for certain brands, which include familiar names such as Angel Delight and Bisto.

"The advantage of this process is that there can not be a single investment banker or a food business that does not know that if the price is right, the board would look at a sale of money. badets, "Darby says .

Oasis, which doubled its stake in the company last week to 17.3%, accuses Darby, a former executive of Coca-Cola and Vodafone, of "persistent value destruction" during his five years in office. He says Premier is in a "zombie state" because of his inability to stimulate growth.

Paulson & Co, who controls a 6% stake in Premier, ranks on the Oasis side but the main shareholder Nissin Foods, which holds a 20% stake, supports Darby .

Oasis wants Premier sells Batchelors, the Cup a brand of soup, noodles and pasta sauces that she says could raise £ 200 million to pay off the group's heavy debts.

Prime has a net debt of 496 million pounds – more than three times its underlying profits. The Prime Minister said Wednesday that he was on track to meet profit expectations as he revealed a 1.7% increase in sales in the three months leading up to June 30th. Mr Kipling cake sales rose 14% in the UK after the launch of a new advertising campaign and Batchelors sales also progressed

Overall, sales of branded grocery products have falled. promotional activity. Unbranded candy sales also declined, as the group lost two contracts with retailers.

Premier's share price has fallen more than 20% since US perfume maker McCormick dropped its bid in 2016.

Chairman Keith Hamill said the company had unsuccessfully discussed a sale of Batchelors at the beginning of the year with Nissin Foods, the Japanese noodle maker,

. at. That did not happen, "said Hamill, adding that the company would only sell its badets at an" exceptional price "that would allow it to pay off its debts and invest for the first time. Future, what most shareholders wanted, however, he said, "I do not think anything is off the table."

Hamill said, "Activist investors are addressing normally to a big lazy company and persuade her to act. On average, this tends to produce better performance. We are in fact a slender and hardworking company. However, all of these things contribute to the way management and the board of directors think and help focus the concentration of everyone involved on critical issues.

"The challenge is not a terrible thing, we will probably benefit … We know we need to find ways to accelerate recovery and what we need to say to shareholders, Is that we are working on it. "

Premier's Board of Foods supported Darby, who since his accession in 2013 has halved his debt by nearly £ 1 billion, has accelerated the development of new products , doubled its international revenues and signed lucrative deals with Mondelēz, the US food group and Nissin.I come from a long way in a tough and scorching environment.

"Of course, I would like the price of the action be higher. I am convinced that it will be if we continue to do the things we do and I have personally invested in this waiting. "