Premier Foods’ boss wins more support against bid to oust him

Premier Foods, the Ambrosia custard-to-Bisto gravy maker, on Thursday won extra support in its effort to fight off an activist investor’s attempt to oust chief executive Gavin Darby.

Influential shareholder advisory group ISS has recommended investors vote in favour of re-electing 61-year-old Darby at the firm’s annual meeting on July 18.

Its guidance comes despite Hong Kong-based Oasis Management, which owns a 9.3% stake, branding the manufacturer “zombie-like” under Darby.

He 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 firm instead opted for a tie-up with Japanese noodles maker Nissin, now a 19.56% shareholder. Shares edged down to 39.62p.

ISS’s report said: “While the company’s performance record under Darby’s leadership is not particularly compelling, it is not evident what, if any, clearly preferable strategic alternatives are available.”

Oasis Management claimed that data going back to 2013 shows that ISS has never supported a requisitioned resolution to remove an executive director brought by a shareholder. Premier Foods welcomed the recommendation, following support from the voting advisory services Glass Lewis and PIRC.

Separately, Oasis Management urged the firm to place the Batchelors brand in an open auction.