A COMPANY owned by a millionaire British chilled-food manufacturer has increased its shareholding in Northern Foods, the company that is set to merge with Greencore.

Saerimner Limited, a company controlled by Yorkshire businessman, Ranjit Singh Boparan, increased its stake in the company to over 6 per cent this week.

Mr Boparan is the owner of the 2 Sisters Food Group, a supplier of chicken and prepared chicken products to retailers including Marks Spencer and Tesco. The privately-held company has an annual turnover of almost £1 billion and employs approximately 7,000 people. Mr Boparan has made a number of acquisitions in recent years, including a Dutch-based poultry processing business this year. His company Boparan Ventures bought the well-known British fish and chip shop chain, Harry Ramsdens, earlier this year.

Last month Greencore announced plans to merge with its rival Northern Foods to form a new entity called Essenta. The proposed merger is expected to yield synergy savings of €40 million for the new entity. Both companies have a significant presence in the British chilled food and convenience food retail sector.

Shareholders are due to vote on the proposed merger at scheduled egm’s in January.

The deal, which was recommended by the boards of both companies, received the support of the seven largest shareholders in Greencore and Northern Foods in the 24 hours before the announcement, equating to 30.3 per cent of Greencore’s shareholders and 11.8 per cent at Northern Foods.

However, there has been some market speculation that a counter-bid may be launched for Northern Foods.

The Leeds-headquartered company saw its shareprice soar by 25 per cent on the day of the announcement amid the rumours .