Ownership of Robert Wiseman Dairies (LON:RWD) may change soon after the Scottish dairy group confirmed takeover talks are underway with Muller Dairy, the German-owned group behind Muller Rice.

Shares in Wiseman soared by 40% on the news though it cautioned there was no certainty of a bid, which today’s statement said would be a cash offer. 

Muller Dairy, the UK subsidiary of the Theo Müller group, has until 10 February to make a firm offer.

Wiseman was formed in 1947 and is the UK’s largest fresh milk supplier, accounting for 30% of the milk drunk each day. The group supplies all of the Co-op’s milk while Sainsbury’s and Tesco are both customers. 

The group currently employs over 4,750 staff with dairy sites at Aberdeen, East Kilbride, Bellshill, Manchester, Droitwich Spa and Bridgwater.

Shropshire–based Muller is best known for its dairy-based desserts such as Muller Rice and its speciality yoghurts.

Shares in Robert Wiseman rose 83p to 327.3p. 

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The Real Good Food Company (LON:RGD) shares gained around 4 per cent today as it reported a year-on-year improvement in operating profit.

The group, whose operations span sugar distribution, cakes and bakery supplies, also revealed that stock levels had reduced in the fourth quarter following the “easing of problems in the sugar supply chain”.

At the same time the pressure on working capital reported in the first half has eased and the company’s borrowing have reduced over the fourth quarter.

Business developments in the last quarter include the launch of the Renshaw baking ingredients brand, while Garretts, which supplies dairy, bakery and ice cream ingredients to food manufacturers, has extended its range.

The company’s new Whitworths brand should be on retailers’ shelves in the first quarter. The modernisation of Haydens Bakeries is “progressing”, the company said, albeit around six months behind schedule.

Chairman Pieter Totté said: "Whilst we are still only midway through the key Christmas trading period, I am pleased with the progress we have made so far, both in terms of our financial performance this year against last year, and the good progress being made with all the strategic initiatives for each of our businesses."

In a recent interview, the chairman said The Real Good Food Company has the potential to double sales in the next three years.

This morning’s update was reassuring, according to broker Killik & Co.

“Now down at 34.75p, the shares trade on just 5.6x December 2011E earnings, falling to 5.0x FY12E, which we view as a very undemanding rating in the context of the group’s growth plans,” Killik said.

The broker believes that after a three-year period in which the group’s trading has been overshadowed by the impact of EU sugar reforms, and it is now well placed to make significant operational progress.

“The aim is to more than double revenues and EBITDA margins to around £500m and 6%, respectively, by calendar year 2014,” it added.

“Furthermore, management proposes to achieve these goals by entirely organic means, without mergers, acquisitions or dilutive fundraisings, and whilst keeping gearing around current levels.”

The company has issued 320 million new shares priced at 3p each, some 32 per cent higher the prior market price.

“The US$15 million dollars raised at a significant premium underpins the potential our investors see in the business and endorses the progress that we have made,” said Agriterra director Andrew Groves. 

On AIM Agriterra shares gained 0.425p, or 18.7 per cent, to trade at 2.7p a share.

Agriterra said that the new cash will fuel its expansion of its pan-African agricultural operations.

Part of that expansion will include a palm oil operation. It said that palm oil is an attractive commodity to complement the group’s current agricultural portfolio of cattle ranching, cocoa buying and trading and maize farming and milling operations.

This afternoon the company announced that it has already acquired a lease over 45,000 hectares of brownfield agricultural land. This is in an area of Sierra Leone that is suitable for palm oil production.

Meanwhile some of the placing proceeds has also been earmarked for Agriterra’s beef ranching business. Here the firm aims to increase its total breeding herd size from 1,000 head to 5,000 by 2012 and to 10,000 by 2015.

It also plans to build a 4,000 head per month capacity abattoir on schedule for commissioning in the second quarter of next year.

Elsewhere funds will also be used to expand Agriterra’s cocoa buying and trading operations. 

Groves added: "We are extremely excited about the prospects of the company as a multi-project and multi-commodity group with financing in place to achieve our rapid development plans as we remain focussed on capitalising on the growing agricultural market in sub-Saharan Africa and becoming a leading food provider.   

“The potential upside in our sector is considerable, supported by forecast global demographic changes, and we believe we have a business that will deliver value for its shareholders." 

Food manufacturer Premier Foods (LON:PFD) reported this morning that it has managed to defer an upcoming covenant test concerning its debt after securing an agreement with its bankers. The firm’s shares responded by putting on more than 25 per cent to hit 4.2 pence each in early trading today.

Premier – which owns some of the UK’s most well-known food brands such as Branston, Hovis, Mr Kipling and Oxo – said that “constructive discussions” were continuing over longer-term refinancing of debt beyond its current maturity of December 2013.

The firm has now obtained agreement from its banking syndicate to a deferral of its forthcoming financial covenant test from December 31 this year to March 31 2012. The agreement forms part of the firm’s discussions about longer-term refinancing of its debt and “confirms ongoing bank support for the business”, it said.

“This is an important step towards securing a longer term financial foundation for the business,” said Michael Clarke, Premier’s chief executive officer. “I am very pleased that after sharing our vision and high-level plans, our banking syndicate has confirmed its support. In recent weeks, we have set out our priorities and made significant leadership changes to strengthen our focus. We are now moving quickly to finalise our detailed growth plans to ensure we continue to build momentum in the business.”

Early last month, Premier warned investors that its third quarter performance had been “significantly below expectations” with a 3.6 per cent drop in sales and a 1.9 per cent loss of market share.

African agricultural firm Agriterra (LON:AGTA) enjoyed a “highly active” period during the year to May 31 with turnover increasing 55 per cent thanks to substantial organic growth in the firm’s beef and maize divisions.

Turnover increased to US$13.6 million during the year (2010: US$8.8 million) and total maize meal sales were up 56 per cent to 28,822 tonnes. The firm’s loss before tax reduced to US$2.2 million in 2011, compared with US$3.9 million in 2010.

Agriterra said that its strategy of becoming a vertically-integrated beef producer is progressing. At its Mozambican cattle ranching business, Mozbife, Agriterra said it had invested significantly during its 2011 financial year and continues to do so. This has translated into the growth of its total herd – which now stands at 2,350 despite temporary importing restrictions of cattle from South Africa.

The firm is in the process of constructing a dam at Mavonde, which will eventually facilitate the irrigation of up to 4,000 hectares of pasture, and it is investigation the possible acquisition of additional neighbouring land to add to its existing 16,000 hectares.

Agriterra said that the development of its integrated grain and beef businesses in Mozambique is progressing “extremely well” and that initial beef sales have been “exceptionally well received” locally in Mozambique, where demand can currently only be satisfied by imports.

Meanwhile, the first phase of Agriterra’s Vanduzi feedlot project has been completed, while the construction of an abattoir with a capacity of 4,000 head per month continues with commissioning expected in the second quarter of the current financial year.

After the end of its 2011 financial year, Agriterra made a move into the cocoa sector through the acquisition of Sierra Leone-based Tropical Farms.

Full year trading profits are now expected to fall below market expectations. But the company stressed that the fourth quarter, which contributes around half of annual profits, will still be influential and Christmas trading will determine just how far below expectations the annual results will be.

The company said that while trends have improved, it has under-performed the rest of the market. Volumes have yet to fully recover from the slower than expected re-building of in-store presence following a customer dispute earlier in the year, it explained.
 
In opening trades the Premier Foods shares fell 4p, about 40 per cent, to trade at 5.75p. 

Newly appointed chief executive Michael Clarke, who joined the company on August 16, said: "I've covered a lot of ground during my first weeks with Premier Foods and am convinced that there are substantial opportunities here but there are also significant challenges that we have to overcome.”  

“We have brands that consumers like and talented, passionate people who are determined to turn the business around.

Clarke added: "While the current trading performance continues to be disappointing and significantly behind our expectations, we have already identified a number of steps to build a more profitable business.”

The immediate priority, it says, is to conclude talks with the banks over a revision of its banking covenants and refinancing. According to Clarke these talks are ‘well underway’ and he hopes to reach a successful conclusion in due course.

Beyond that it plans to focus on its ‘power brands’ – Ambrosia, Batchelor's, Bisto, Hovis, Loyd Grossman, Mr.Kipling, Oxo and Sharwood's.

Liberia-focused Equatorial Palm Oil (LON:PAL) announced today that its subsidiary, Liberian Palm Developments, has agreed a US$10 million loan facility with two firms connected to India’s Siva Group in a deal that will see the company gain exposure to a major palm oil project in Papua New Guinea.

LPD has made the arrangement with Geoff Palm and Broadcourt Investments. Both of these firms are related to the Siva-owned BioPalm Energy – which itself has a 26.7 per cent shareholding in Equatorial Palm Oil as well as a joint venture agreement with Equatorial’s subsidiary Equatorial Biofuels.

The deal will see LPD provide Geoff Palm with US$10 million for a period of six months, while Broadcourt has provided guarantees to LPD in relation to the loan. Interest on the principal sum will accrue at the greater of LIBOR (the London Interbank Offered Rate) plus four per cent per annum or five per cent annum, while a transaction fee is payable at the rate of one per cent on the loan.

Geoff Palm has a large scale oil palm project in Papua New Guinea – and established palm oil-producing country – where it has signed long-term leases with the country’s government. The projects cover an area of 110,000 hectares, with 89,000 hectares suitable for the cultivation of oil palm.

Equatorial’s directors said today that, in addition to the potential long-term strategic benefit of strengthening its relationship with BioPalm Energy, and the wider Siva Group, the loan agreement provides it with an opportunity to generate a competitive rate of return on cash funds held and also with exposure to a major oil palm project outside of West Africa.

Equatorial Palm Oil (LON:PAL) said today that the first half of the year was marked by significant progress as it prepares to complete the planting this year of 1,200 hectares of new oil palms at its projects in Liberia.

The firm, reporting interim results for the six months to June 30, revealed that after it inaugurated Liberia’s only commercial palm oil mill in May, soon followed by sales of Equatorial’s first crude palm oil, it generated revenue of US$175,000 for H1 2011 (H1 2010: US$0). Equatorial’s operating loss was US$1.3 million (H1 2010: US$2 milion), while its loss before tax was reduced to US$693,000 (H1 2010: US$2.2 million) thanks to a profit relating to the firm’s transaction in February this year with BioPalm Energy – a subsidiary of Indian conglomerate Siva Group.

Equatorial finalised a US$60 million joint venture with BioPalm that saw the latter company contribute US$22.5 million in equity funds, with Equatorial Bio-Fuel (a subsidiary of Equatorial Palm Oil) contributing US$7.5 million, in return for a 50-per cent interest in Equatorial’s Liberian oil palm assets. BioPalm is also arranging an additional US$30 million loan facility to the joint venture.

Equatorial’s Mill is currently processing 30 tonnes of fresh oil palm bunches per day. These are sourced from the surrounding 3,500 hectares of existing oil palms that have been rehabilitated by the company and the joint venture during the past year. Daily production is averaging five tonnes of crude palm oil as an average extraction rate of 17 per cent.

The Mill is also being modified so that it will, during the fourth quarter of this year, be able to run at its full capacity of five tonnes per hour.

After completing the planting of 1,200 hectares this year, Equatorial plans to plant more than 4,000 hectares next year and between 6,000 and 8,000 in 2013.

“The first half of 2011 has been another transformational period for the Company following the full implementation of the JV Agreement and we are delighted to have secured BioPalm Energy as a long term partner to the company,” said Michael Frayne, Equatorial’s executive chairman. “EPO is well funded to progress its development goals through the establishment of nurseries and planting of palms for sustainable palm oil production. The remainder of 2011 and 2012 will be an exciting time for the company and I look forward to updating shareholders as we continue to work towards our long term strategic goals.”