March 5 (Bloomberg) -- Premier Foods Plc, the U.K. maker of Hovis bread, said it plans to raise 379 million pounds ($537 million) in a share sale alongside an investment from private- equity firm Warburg Pincus LLC.

Premier Foods will issue the shares at 26 pence each, a 9 percent discount to the closing price on March 4, the London- based company said today in a Regulatory News Service statement. The share sale will be fully underwritten by Citigroup Inc. and RBS Hoare Govett Ltd.

Warburg Pincus has also committed to a firm placing of 64 million pounds, or a 10.3 percent stake of the enlarged company, Warburg said in an e-mailed statement.

Premier Foods reported a widened full-year net loss of 443.8 million pounds, from 63.3 million pounds a year earlier. The company said its dividend remained suspended.

To contact the reporter on this story: Jonathan Browning in London jbrowning9@bloomberg.net.

Last Updated: March 5, 2009 02:48 EST