Yahoo Finance Mr Kipling boss survives exceedingly close vote thanks to Japanese shareholder's support
The boss of Premier Foods was today saved by its largest shareholder, Japanese noodle maker Nissin Foods, during company’s eagerly anticipated - and feisty - annual general meeting.
Gavin Darby, who had been facing calls from a clutch of activist investors to stand down, received the support of 59.01pc of shareholders for his re-election.
While Premier’s second-largest shareholder Oasis Management, which has spearheaded a concerted shareholder campaign to oust Mr Darby, conceded defeat; it claimed the majority of “independent shareholders” voted against the chief executive’s re-appointment.
Nissin was conflicted and should not have voted on the resolution amid a “cosy relationship” with Premier's board, Oasis alleged. A spokeswoman added: “Gavin Darby has no credibility and he should step down immediately.”
Premier Foods shareholders pretty cross abt a few things by look of this.. pic.twitter.com/qhajpV1n5n
— Sarah Butler (@whatbutlersaw) July 18, 2018
A spokesman for Premier Foods disagreed, saying the vast majority of “floating voters” had “swung behind Gavin”.
Speaking in front a packed room of shareholders Mr Darby refused repeated calls for him to resign. Speaking to reporters after the meeting chairman Keith Hamill rejected the notion that the vote result had left Mr Darby’s position as untenable and vowed to win over dissenting shareholders.
Nissin’s controversial relationship with Premier was first announced following a failed takeover approach from US spice giant McCormick in 2016. The Japanese company bought nearly a fifth of the Mr Kipling owner while agreeing a strategic partnership, supplying noodles to Premier's soup brand Batchelors.
In response to a question from Phillip Meyer, the general counsel for Oasis, on the legality of Nissin voting in the AGM, board representative Shinji Honda told shareholders: “Nissin took legal and professional advice. [And] satisfied to vote for the resolution.”
In an apparent change of heart, Premier said late on Tuesday evening it was open to the idea of selling some of its brands. Mr Hamill went on to tell shareholders: “If you know anyone who wants to make a reasonable offer, we’d be prepared to send round a car and make them a cup of tea.”
Oasis said Premier’s board was guilty of “a change in posture to consider the sale of brands”. One of the activists’ main grievances was the company's reticence to put sell any of its raft of household names.
Mr Hamill insisted it had been made clear in Premier’s annual report that the board was open to offers at the right price for its brands. But Batchelors would not be into a “public auction”.
