A statement released to the London Stock Exchange has revealed that Bakkavor rejected an initial offer on 27 February, before turning down a revised proposal on 10 March which valued the firm at 85p per share plus shares in Greencore.
In addition Bakkavor shareholders would retain the right to receive the final dividend declared on 4 March of 4.8p per Bakkavor share.
“Greencore believes the revised proposal provides a highly compelling value creation opportunity for both Bakkavor and Greencore shareholders,” the firm said when the second offer was submitted.
Moving forward, Greencore will continue to evaluate all strategic opportunities, but has not guaranteed returning with a third offer. Greencore declined to comment further when approached.
Commenting on the decision to reject both offers, a Bakkavor spokesperson said: “The board of Bakkavor, together with its financial advisers, carefully evaluated the latest proposal and concluded that it significantly undervalued the Company and its future prospects.
“Accordingly, the Board unanimously rejected the latest proposal on 10 March 2025.”
Headquartered in Dublin, Greencore is a convenience food manufacturer that supplies all major supermarkets in the UK with products including sandwiches, salads, sushi, soups and sauces.
For the 12-month period ending 27 September 2024, Greencore group revenue fell to £1.8 billion, in part due to a decline in volume linked to the sale of Trilby Trading Limited, while group operating profits rose to £84.3m.
Meanwhile, Bakkavor is a leading manufacturer of fresh prepared food that operates 20 factories and four distribution centres in the UK. It reported revenues of £1.9 billion for its 2024 financial year.
