Premier tries to entice investors to nibble at 215p
Tuesday 20 July 2004
Premier Foods also cut back its share price to get its float away yesterday, another victim of the malaise in the new issues market.
The company, which makes Branston Pickle and Ambrosia custard,priced its shares at 215p each, below the advisers' original range of 230p to 260p.
The float raised a higher-than-expected £350m, despite Premier scaling back the amount of new equity on offer from £130m to £118.5m. Hicks, Muse, Tate & Furst, the private equity vehicle that owns Premier, raised the amount of shares it sold by £60m to £231.5m. The move means at least 65 per cent of the equity has been sold in the offer, although this could rise to 75 per cent if an over-allotment option is exercised.
Hicks, Muse bought Hillsdown Holdings, the company that was to become Premier, in 1999 and has since spent some £240m on acquisitions from Nestlé and Unilever.
Premier, whose brands also include Typhoo Tea, had tried to convince investors that it faced less competition than a number of its rival food manufacturers because it has such strong brand labels. Northern Foods and Geest have both issued profits warnings recently. But fund managers were concerned about sluggish sales and were only willing to take on shares at a lower price.
The new price gives Premier a market capitalisation of £532m, still making it one of the largest listings this year. Trading is due to start today.
- 1 The Boy in the Dress, TV review: David Walliams' Boxing Day treat is a celebration of being different
- 2 Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
- 3 Andy Murray takes to Twitter to show off his Christmas jumper
- 4 Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
- 5 Top 10 travel destinations for 2015: From Haiti and Alaska to Namibia and Iceland
PlayStation and Xbox hacked by Lizard Squad
Exclusive: Abusers using spyware apps to monitor partners reaches 'epidemic proportions'
Margaret Thatcher 'expressed fears of Asian rising' at Anglo-Irish summit in 1984
UK weather: Travel chaos continues as Kings Cross train delays add to snow on roads
The 'Black Museum': After 150 years, public set to see exhibits from police’s grisly crime museum
British actor Idris Elba cannot star as James Bond because he is black, says shock jock Rush Limbaugh
Rozanne Duncan: Ukip expels councillor for 'jaw-dropping' comments made in BBC TV interview
Germany anti-Islam protests: 17,000 march on Dresden against 'Islamification of the West'
Ukip member gets into Christmas spirit with Union Flag plea to Santa 'for our country back'
BBC director Danny Cohen: Rising UK antisemitism makes me feel more uncomfortable than ever
Katie Hopkins speaks out on childhood obesity: 'Parents of fat children should be prosecuted for child cruelty'
iJobs Money & Business
Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...
Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...
Not specified: Selby Jennings: SVP Model Validation This top tiered investment...
Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...