One of the best performing shares since lockdown has continued its solid gains following the sales of Hovis in a deal worth £37m.
Premier Foods share price has continued its rapid rise to see the business worth just shy of £900m at today’s price of 105p per share.
Back in July, Premier Foods was revealed as the best performing share since the the original lockdown with a 345% gain (Revealed! The five best shares to invest in since lockdown).
In an announcement today, Premier Foods confirmed it sold its minority interest in Hovis for £37m:
The transaction closed and completed late on 5 November 2020; proceeds of £37m due to the Group include the repayment of outstanding loan notes and accrued interest.
The Group’s investment in Hovis was fully written down in 2016. This transaction strengthens the Group’s financial position as it continues to improve its leverage profile.Disposal of Hovis joint venture
With a second lockdown recently commencing in the UK, it appears there is renewed appetite for Premier Foods as it has performed so well under similar conditions previously.
Should its rise continue, it will build on its 5-year all-time high share price and reach a £1bn valuation.