UK: Greene King acquires Capital Pub Co
Greene King has submitted a GBP2.35 per share recommended offer for Capital Pub Co
Greene King has trumped Fuller, Smith & Turner in its attempts to buy Capital Pub Co in the UK, by agreeing to acquire the London-based firm for GBP93m (US$150m).
The brewer and pub operator confirmed earlier today (19 July) that it has made a recommended cash offer of GBP2.35 per share for Capital, which has 34 sites in Greater London. Last month, Fuller, Smith & Turner (FST) saw its GBP2 per share for Capital turned down, leading to Capital being granted a deadline of 1 August by the UK Takeover Panel for FST to 'put up or shut up'.
Greene King said today that the purchase grants it “specific opportunities to grow food and accommodation participation within Capital”. Within the first year, the company is targeting at least GBP2m of cost and revenue synergies.
Greene King has also secured “irrevocable undertakings” in respect of around 34% of Capital's issued share capital. “All of these would remain binding in the event that a competing offer is made,” Greene King added.
To view Greene King's announcement, click here.
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