Premier Foods Plc, seeking to fend off an unsolicited takeover approach from McCormick & Co., said Japanese noodle maker Nissin Foods Holding Co. agreed to buy a 17.3 per cent stake.
Nissin will have the right to nominate one director to Premier’s board, the UK company said in a statement Thursday. The Japanese company will buy the stake from an existing shareholder, according to the statement. Nissin and Premier said yesterday they were working on an accord to share brands and know-how.
"We welcome Nissin as a new long-term shareholder in our business," Premier Chairman David Beever said in the statement.
Premier shares, which surged yesterday after the company said McCormick had made an approach, fell 5.6 per cent to 50.75 pence at 8:10 am in London.
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