Bakkavor Halts Plans For IPO, Blaming Market Volatility
Bakkavor Group, the UK-based provider of fresh prepared foods, has announced that it will no longer proceed with its planned initial public offering.
Last month, it was reported that the group intended to sell at least a 25% stake in the company, raising about £100 million.
Bakkavor now says that while it received sufficient institutional demand to cover the offering, the board has decided that the transaction would not be in the best interests of the company.
It cited the 'current volatility in the IPO market' as the reason for this decision.
Bakkavor says that it will continue to pursue its 'proven strategy' in the fast-growing fresh prepared-food sector.
It adds that the business continues to trade well, and the board remains confident for the outlook of the group.
Bakkavor has a 30% share of the UK’s £7 billion fresh prepared-food market, providing salads, desserts, pizza and other prepared meals for customers such as Tesco, Marks & Spencer and Sainsbury's.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.