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One of the City’s most influential investors is resisting a recommended takeover of Finsbury Food Group PLC, according to Sky News. Sky said that Fidelity International, which holds a 10% stake in the company, plans to vote against the 110 pence-a-share bid from DBAY Advisors recommended last month. https://news.sky.com/story/fidelity-has-little-appetite-for-finsbury-food-bid-12983283 Alex Wright, portfolio manager, Fidelity Special Situations Fund and Special Values PLC, told Sky News: ‘DBAY Advisors’ offer to buy Finsbury Food Group at 110p per share undervalues the company, and Fidelity International will not be accepting the bid at this level. ‘To put this offer in perspective, the bid values the company at a mere 11 times forward earnings, which is a very small premium to the 103p price the stock was trading at back in March this year. ‘The company has been excellently managed by the current CEO and CFO through both Covid and recent commodity price rises. ‘With large efficiency and IT investments now complete, strong future cashflow generation should provide a platform for management to continue to add value through additional bolt-on M&A.’ Shares in Finsbury Food Group closed up 0.2% at 109.75p on Thursday in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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