Premier Foods plays down £200m Batchelors sell-off

Bisto gravy-to-Ambrosia custard maker Premier Foods on Monday tried to play down reports that a £200 million sale of its soups and noodles brand Batchelors is on the menu.

The manufacturer spoke out after it was claimed that the firm is in talks to sell the division to its biggest shareholder, Japanese noodle-maker Nissin, in a move that could trigger a gradual break-up of the group.

The Hertfordshire-headquartered business did not rule out selling off the arm behind Super Noodles. However, it stressed that it periodically has discussions with third parties, including Nissin. It added: “There is no current situation where discussions have gone beyond an exploratory sale.”

Premier Foods also pointed to previous updates, and said it has not changed its strategy to cut its debt pile, which stands at more than £500 million.

Boss Gavin Darby has come under pressure to boost returns since 2016, when Schwartz spices owner McCormick abandoned a 65p-a-share bid, valuing the business at £537 million.

Shares in Premier Foods, which is due to publish third-quarter numbers tomorrow, rose 1.27p to 42.62p.