Premier Foods Gets 66% Take-Up for share Issue

LONDON (Reuters) – Premier Foods (PFD.L), maker of household favourites like Hovis bread and Branston pickle, has had received subscriptions for 66 percent of the new shares it is issuing to raise 404 million pounds ($575.5 million).

The company, looking to pay down 1.8 billion pounds in debt built up through acquisitions, said on Friday the remaining 34 percent or 358.5 million shares had been allocated to investors who had conditionally agreed to buy them ahead of the offer.

Of those, 83.6 million had been bought by private equity group Warburg Pincus which comes on top of the 246 million it had already agreed to buy as part of the refinancing, taking its total stake in Premier Foods to 13.75 percent.

The owner of brands such as Mr Kipling cakes and Bisto gravy said in a statement that the new shares would be admitted for trading on March 24.

($1=.7020 Pound)

(Reporting by Paul Hoskins)