Premier Foods, producer of Hovis bread and Mr Kipling cakes, is on Thursday expected to unveil a £400m ($567m) equity issue alongside its annual results, as it sells a large minority stake to Warburg Pincus, the US private equity group.

The issue will more than double the equity value of the group, which has dwindled to £238m. The shares closed up 3½p at 28½p on Wednesday.