Northern Foods confirms Boparan interest

NORTHERN Foods is urging shareholders to continue to back the proposed merger with Greencore Group despite interest from Harry Ramsden owner Ranjit Boparan.

The Northern Foods board confirmed it had received an approach via letter from Boparan Holdings asking for information about the company following suggestions Mr Boparan is ready to make a £300m bid for the firm.

In a statement, Northern Foods said Boparan had not made any offer or indicated the price at which it would make an offer.

Last month, Yorkshire-based Northern Foods announced plans to merge with Irish convenience food group Greencore to create a combined business called Essenta Foods.

Northern Foods chief executive Stefan Barden subsequently left the firm to join catering supplier Brakes as its UK chief executive.

The company said this morning that the board continues to back the merger with Greencore that “will create a convenience foods business with a strong platform for further growth and the potential to realise significant cost savings through synergies”.

“The board of Northern continues unanimously to  recommend shareholders to vote in favour of the proposed merger at the shareholder meetings on 31 January 2011, as the directors of Northern intend to do in respect of their own respective beneficial holdings of Northern shares,” it said.