Bakkavor has requested an extension to the ‘put up or shut up’ (PUSU) deadline for the proposed £4bn merger with fellow food-to-go manufacturer Greencore.
Following two previous rejections of ‘undervalued’ offers, the boards announced on 2 April that they had reached an agreement in principle on the key financial terms of a possible cash and share offer by Greencore for Bakkavor.
In accordance with Rule 2.7 of the Takeover Code, the PUSU deadline by which Greencore was required either to announce a firm intention to make an offer for Bakkavor or to announce that it does not intend to make an offer was 11 April 2025.
With discussions ongoing between the two food-to-go manufacturing giants regarding the possible offer, Bakkavor has requested an extension to the deadline until 5pm (London time) on 9 May 2025, which the panel is said to have consented to. This extension will allow time to continue discussions on the other terms and conditions of the merger deal as well as enabling the completion of due diligence to the satisfaction of the companies, read a statement from Bakkavor.
Should the companies still fail to announce either a firm offer or that they will not be proceeding with a merger befoer the deadline, they will be subject to a six-month standstill period. However, the deadline can be further extended with consent of the panel.
Bakkavor CEO Mike Edwards commented: “We’re not there yet, but if it goes ahead the deal would be brilliant for the business and its colleagues, customers and other stakeholders. It would bring together two fantastic businesses, with the best people in the industry and an ability to take a ‘best of both approach’ to improve performance on every level”.
Bakkavor is expecting to create more opportunities for colleagues, do an even better job for customers, and invest more behind innovation and growth, said Edwards. “I am excited that our shareholders will retain a meaningful stake in the future group, and our founders, Agust and Lydur Gudmundsson, will have seats on the Board,” he added, noting that day-to-day operations at Bakkavor remained unchanged in the meantime.
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