Pubco suspends shares as £400m offer becomes effective

Punch Taverns

Staffordshire pubco Punch Taverns has suspended its shares on the London Stock Exchange following court-sanctioned approval of a £402m takeover deal.

The High Court ruling, issued under the Companies Act 2006, paves the way for special purpose vehicle Vine Acquisitions to progress its all-cash offer for the entire issued and to be issued share capital of Punch.

In an update to the markets, Punch said: “Trading in Punch shares on the London Stock Exchange’s main market and the listing of Punch shares on the premium listing segment of the Official List of the UK Listing Authority (have been) suspended.

“Applications have been made to the UK Listing Authority and the London Stock Exchange in relation to the de-listing of Punch shares from the premium listing segment of the Official List and the cancellation of the admission to trading of Punch shares on the London Stock Exchange’s main market for listed securities.”

The latter is expected to become effective from 8am on Friday (August 25).

Punch shareholders approved the sale of the group to Vine Acquisitions in February on the basis of an offer of 180 pence per share, a price which values the business at £402.7m.

Heineken and Patron Capital, using Vine Acquisitions as an SPV, have agreed the deal, which will see them acquire the entire and to be issued share capital of the Staffordshire company.

Immediately on completion of the deal, Heineken was set to acquire from Patron a portfolio of around 1,900 Punch pubs with Patron retaining an additional 1,329 which it would run itself.

Earlier this month, market watchdog, the Competition and Markets Authority (CMA), cleared the way for the deal to complete when it said it accepted pledges by Heineken to sell pubs in 33 areas of the country to preserve suitable competition and to ensure drinkers had a fair deal.

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