'active' : ''"> For patient shareholders, it’s payday. Good opportunity. As UK firms with property assets remain catnip to international investors, Canaccord’s Parson says pub chain rival Mitchells and Butlers could be next in line for a sale. For the purposes of Rule 2.9 of the Takeover Code, Greene King confirms that, as at 16 August 2019, it had in issue 310,011,031 ordinary shares of 12.5 pence each. ​, “Are there other overseas investors out there with similar criteria? Are you sure you want to delete this comment? It has a dividend yield of 8.8pc, although this could always change. Newest first, -1) ? dataLayerNews = {}; Sharing the full story, not just the headlines. It made an offer of 850p per share deal, a premium of more than 50pc to the previous day’s closing share price. ‘It’s a whopping premium that implies CKA sees significant value in the property portfolio. } to your comment. The share priced peaked in August 2016, and has since halved trading at £21.25. You can also choose to be emailed when someone replies vOut += aTags[i].trim().replace(reg, '-').substring(0,40); If so, it is hard to rule out further M&A in the pubs sector.”​, Speaking as the takeover was announced, Greene King chief executive Nick Mackenzie said: “CKA is an experienced UK investor and shares many of Greene King’s business philosophies. Stanley Cup Revelry Has Mostly Proceeded as Normal. The acquisition should also allow the 24.4p dividend to be paid out. The Suffolk-based firm operates more than 2,700 pubs, bars and restaurants. Ian Forrest, of broker The Share Centre, said despite this risk, the company remained a strong one, as it moved to diversify from pure advertising revenue. Imperial Brands has been under increasing pressure as more people quit smoking, raising doubts on the potential growth of the sector and the stock itself. ‘The UK pub and brewing sector shares these characteristics and we believe that this sector will continue to be an important part of British culture and the eating and drinking-out market in the long run.’, Greene King makes the Old Speckled, Abbot Ale and Green King IPA beers at its two breweries. vOut = vOut.toLowerCase(); The deal will give Greene King control of 285 tenanted pubs and 123 managed houses, most of them located in the Thames Valley. Commenting on the deal, Paul Ruddy, leisure analyst at investment bank Goodbody, said the purchase could lead to even more mergers and acquisitions (M&A) in the food and drink sector. Due to the sheer scale of this comment community, we are not able to give each post Subscribe, By James Ridler Enter your email to follow new comments on this article. Most liked, -1) ? It also oversees the Hungry Horse, Chef & Brewer and Farmhouse Inns chains. Greene King’s former boss Rooney Anand is said to be about to pocket £10million as a result of the takeover as the boss of 14 years still holds 1.1million shares in the pub chain. Snack Makers Promote Chewing Thoughtfully, Former President Barack Obama Remembers Toni Morrison, Recipe for the Ultimate Chicken-Salad Sandwich, Arun Jaitley, Bold Indian Finance Minister, Is Dead at 66, Stellenbosch Triennale, a Bold Experiment, After Fleeing North Korea, Women Get Trapped as Cybersex Slaves in China. Prior to the Leave vote, Greene King's shares were trading at 850p each. }); The takeover was originally recommended to shareholders in August by the Greene King board, which was backed earlier this month and cleared by the European Commission. Most liked. A company perennially discussed as a takeover target is broadcaster ITV. Its concentrated share ownership means a buyer ‘would only need to make a few calls’ to gauge interest, he says. Greene King said it would close Morland's brewery at Abingdon, with the loss of 100 jobs, transferring Ruddles and Old Speckled Hen, Morland's biggest brands, to its own brewery in Bury St Edmonds. ‘We think it should be viewed as attractive by shareholders given the premium offered and the uncertain UK consumer and economic outlook,’ says Anna Barnfather, an analyst at Liberum. Its shares were unchanged yesterday at 676.5p. However, executives said strong cash flow meant the debts were manageable. Discover how to increase your operational efficiency and more! } N.H.L. 'active' : ''"> Investors are reportedly pressuring the management to sell off parts of the business. Since the EU referendum, British microchip maker Arm Holdings, Cathedral City maker Dairy Crest, Alton Towers owner Merlin Entertainment and Telford Homes have all fallen into foreign hands – typifying the UK’s cheap post-Brexit assets. It will also have four of the country's leading cask ale brands - Abbot, Ruddles, IPA and Old Speckled Hen. Despite this, Mr Lowcock said that even if a takeover is not imminent, the stock could still be worth buying. The launch of its streaming service BritBox should also mean the company attracts bigger audiences. The High Court has sanctioned the takeover yesterday (29 October) meaning the takeover can now complete. What Happened to South America’s Missing Mega-Mammals? “The difficulty is there aren’t many takers for doubling up on exposure to British commercial property right now,” he said. The share price has fallen 90pc in the past five years, making it a tempting target for a foreign commercial property landlord looking to add to its portfolio and diversify geographically. Britain's largest pub and brewery company Greene King has agreed to a £4.6bn takeover by a Hong Kong-based conglomerate. Greene King has been bought by Hong Kong’s richest man but the FTSE 250 brewer may not be the last British giant to fall prey to international rivals, according to experts. Oldest first, -1) ? Markets.com analyst Neil Wilson thinks the deal could eventually lead to more pub closures across the UK as the firm’s new suitor gets to grips with the ‘battered pub trade’. Greene King Scheme shareholders backed the deal earlier this month and it has also been cleared by the European Commission. It is expected that trading in Greene King shares on the London Stock Exchange’s Main Market for listed securities, as well as the listing shares on the Financial Conduct Authority’s official list, will be cancelled by 8pm tomorrow (31 October). return vOut; After taking on a tranche of debt, Greene King will pay a total consideration of pounds 145m, or 445p a share, a 20 per cent premium to Morland's share price before talks were disclosed. Drinks, ‘The news that Britain’s largest pub and brewery company has been sold to an international asset company is very concerning for our beer scene, says Camra chairman Nik Antona. will be published daily in dedicated articles. GREENE KING, the expanding brewer and pub owner, yesterday said it had agreed a pounds 219m takeover of Morland, a smaller rival, seven years after its hostile bid for it was thwarted. Greene King … Indeed, a recent revaluation of its property portfolio indicated a market value of £4.5billion against the £3.5billion book value. It gives possibilities to categorize news stories and view them personalized to mach your essential. Speaking at the time, regional officer Mark Jaina said: “We have had two meetings with management since the takeover was revealed in August, but the information disclosed, so far, is scanty, despite media reports that pub closures could be on the cards.”​. "Greene King owns the freehold or long leasehold on 81% of its properties. Ker-ching: Greene King secured an equivalent £2.7bn offer from CK Noble – Li Ka-shing’s firm. Guidelines. Martin Mays-Smith, chairman of Morland, said: "We view the prospect of Morland losing its independence with sadness, but recognise the pressures that exist for consolidation in the regional brewing sector. Operations, Free newsletter Find your bookmarks in your Independent Premium section, under my profile, There are no comments yet - be the first to add your thoughts, There are no Independent Premium comments yet - be the first to add your thoughts, Greene King to close brewery in pounds 219m takeover of Morland, Email already exists. The pound has fallen 5pc against the dollar in 2019, mostly in the past month, and was cited as a huge factor in Green King being bought out by CK Asset, a part of CK Hutchison, and controlled by 91-year-old billionaire Li Ka-shing.