Activist investor urges Nissin to abstain from Premier Foods CEO vote

An activist investor trying to oust Premier Foods’ chief executive Gavin Darby on Wednesday ramped up its attack and urged the Mr Kipling cakes maker’s largest shareholder to abstain from voting on his re-election.

Hong Kong-based Oasis Management, which owns a 9.3% stake, said Japanese noodle maker Nissin, a 19.56% shareholder, has conflicts of interest.

It pointed to a “substantial commercial relationship” between Ambrosia custard firm Premier Foods and Nissin. Oasis referenced reports from earlier this year that Premier Foods was in talks to sell its Batchelors brand to Nissin.

Oasis wants a new boss who will provide fresh ideas on the best way to “manage and exploit the value inherent in its Batchelors brand”.

Darby has been under pressure to boost returns since 2016, when Schwartz spices owner McCormick abandoned a 65p-a-share bid, valuing the business at £537 million. The shares today were at 38.91p.

A spokesman for Oasis said: “It’s time for Gavin to go and we call on Nissin to recognise this. We do not want other Premier Foods shareholders’ best interests to be blocked by Nissin, a conflicted shareholder.”

The vote is at the annual meeting on July 18. Premier Foods said it has “confirmation from Nissin that it is its intention to vote in favour of Darby’s re-election at the AGM”.

Nissin declined to comment.