Bakkavor shares soar as £1.13bn Greencore bid rejected

(Sharecast News) - Shares in Bakkavor surged late on Friday as it emerged the food company rejected two bids from UK rival Greencore - the second worth £1.13bn.

Greencore on Friday said it would "continue to evaluate all strategic opportunities, including Bakkavor", adding that there was no certainty of a firm offer. It made a first proposal on February 25.

Bakkavor shares were up 18% in late London trade.

The revised offer made on March 7 was 85p in cash and 0.523 Greencore shares for each Bakkavor share. Based on Greencore's closing share price on March 13, the bid implies a total valuation of 189p per Bakkavor share, representing a 25% premium to Bakkavor's closing share price on 13 March 2025 and a 32% premium to Bakkavor's three-month volume-weighted average share price.

In addition, Bakkavor shareholders would retain the right to receive the final dividend declared on 4 March of 4.8p each.

Greencore shareholders would own approximately 59.8% and Bakkavor shareholders would own approximately 40.2% of the enlarged group.

"The enlarged group would create a leading UK convenience food business with a combined revenue of ca £4bn, with a diverse product offering, strong commercial relationships and market-leading capabilities in attractive segments across the UK convenience food landscape," Greencore said in a statement.

Dublin-based Greencore supplies food including sandwiches, chilled prepared meals and cooking sauces to supermarkets in the UK as well as travel retail outlets and coffee shops.

Bakkavor's customers include Tesco, Mark & Spencer and Sainsbury's and also operates in the US and China.

Reporting by Frank Prenesti for Sharecast.com