Big Food Group confirms offer talks
Iceland owner dissussing 110p a share bid
Big Food Group, owner of the 750-store Iceland food retail chain, has confirmed that it is in talks with a potential bidder for the business.
Responding to City and press speculation about a possible offer, BFG issued a statement saying it “confirms that preliminary discussions have been held with a potential acquiror about an offer for the company at 110p per share”.
Big Food, which also owns the Booker Cash & Carry chain, added that the statement had not been made with the agreement of the offeror, “and there can be no certainty that an offer for the company will be forthcoming, nor as to the terms on which any offer might be made”.
The potential bidder was not named, but speculation has focused on Icelandic retail group Baugur, which already holds a 22 per cent stake in BFG. City reports suggest that Baugur, which has cash available after the sale of its stake in department store group House of Fraser earlier this week, would team up with a private equity group to make an offer.
Big Food has been refurbishing Iceland stores, with more than 200 now trading in a new, convenience- led format which has boosted sales. However, it has continued to see overall like-for-like sales decline, down by 1.7 per cent across the 13 weeks to July 2.
