UK: Capital Pub Co rejects Fuller, Smith & Turner takeover bid
Fuller, Smith & Turner goes public to pressure Capital Pub Co board
Fuller, Smith and Turner has said that it will continue to pursue Capital Pub Co, despite seeing its GBP54m (US$87m) takeover bid rejected.
Fuller's went public today (17 June) with its interest in Capital Pub Co. The London Pride brewer said that a GBP53.9m takeover offer, which represents an improvement on its original bid, has been rejected by Capital's board of directors.
Capital's board has refused to negotiate on the potential deal, Fuller's said. It criticised Capital for rejecting the GBP2 per share offer, even though it is 29% higher than Capital's closing price yesterday and 35% higher than its average closing price over the last three months.
A deal would expand Fuller's network of premium pubs. News of its approach comes only a week after the group reported a 29% rise in full-year profits, to GBP24.8m.
"Fuller's would like to work towards a recommended transaction and establish a constructive dialogue with Capital," said Fuller's.
"Fuller's believes that it is in the interests of Capital shareholders for the board of Capital to engage with Fuller's in order to deliver an attractive cash offer in a timely manner," said the brewer. "Fuller's is aware of Capital's stated growth strategy, which it believes will likely require further equity issuance."
Fuller's said that its initial offer, sent to Capital's board on 22 March, valued the business at GBP1.75 per share.
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