**Bakkavor Rejects Greencore’s £1.14 Billion Offer**
Bakkavor Group Plc has turned down a cash and stock proposal from Greencore Group Plc, which valued the London-listed company at £1.14 billion ($1.5 billion). The offer, made on March 7, included 85 pence in cash and 0.523 Greencore shares for each Bakkavor share, along with the right for shareholders to receive a final dividend of 4.8 pence per share. This bid effectively valued Bakkavor at 189 pence per share, a 25% premium over its closing price on Thursday. This is the second time Bakkavor has rejected Greencore’s advances, having previously declined an offer on February 27.
### Greencore’s Strategic Intent
– Greencore, led by CEO Dalton Philips, expressed that a merger would enhance scale by merging complementary businesses and highlighted potential synergies.
– The company is assessing all strategic opportunities, including Bakkavor, but has not committed to a deal yet.
– Greencore must announce by 5 p.m. local time on April 11 whether it will make a firm offer or withdraw.
### Historical Context
– Bakkavor and Greencore have previously explored potential mergers that did not materialize.
– In 2008, Bakkavor held an approximately 11% stake in Greencore but sold it due to financial market instability.
### Company Profiles
– **Bakkavor**: Specializes in prepared meals, pizzas, bread, and salads, serving major UK grocery chains like Tesco, Marks & Spencer, and Sainsbury’s. The UK market accounted for about 85% of its revenue last year, with operations also in the US and China.
– **Greencore**: Founded in 1991 post-privatization of Irish Sugar, it provides a range of food products, including sandwiches and chilled meals, to UK supermarkets and retail outlets.
### Conclusion
With the Icelandic brothers, Agust and Lydur Gudmundsson, holding about 50% of Bakkavor, any potential deal would require their approval. Will Greencore’s next move lead to a successful acquisition?
**FAQ: What was Greencore’s offer to Bakkavor?**
Greencore’s offer included 85 pence in cash and 0.523 shares for each Bakkavor share, valuing the company at £1.14 billion.
