The Board of the Big Food Group (BFG) has confirmed that it would recommend an offer by Baugur of 95p per share to its shareholders, subject to conditions.

The proposal is subject to Baugur and its investment partners receiving final credit committee approvals from their financing banks.

The BFG group, which owns Iceland, confirmed in September that it had opened its books to Baugur before proceeding with an offer. The move coincided with a statement by the group that sales in the 10 weeks to September 10 had slipped by 3.2%, prompting speculation that Baugur, which currently owns a 22% stake in BFG, might reduce its offer.

Its latest offer is expected to be confirmed no later than December 17 this year.