Aim-listed Produce Investments (owner of Greenvale AP, United Kingdom) has confirmed it is in exclusive talks with the biggest producer of Jersey Royals, the famous cultivar for new potatoes.
The Jersey Royal Company produces around 25,000 tonnes of spuds a year and is the biggest user of land on the Channel Island.
Produce Investments is reportedly offering £12m, making the possible deal the biggest take-over for the firm in more than a year.
The bidder, which owns potato breeder and supplier Greenvale, said yesterday it is in a period of exclusive talks, which are subject to due diligence.
The Jersey Royal Company is currently owned by local shareholders with ties to the island’s agricultural industry.
Jersey estimates that between 30,000 and 40,000 tonnes of the potatoes are produced each spring, generating around £28m a year for the island’s growers.
Jersey Potatoes are covered by an EU protected designation of origin.
Produce Investments Share Price [LON:PIL] went up 12.8% on Tuesday.
