Punch shareholders agree to £100m disposal deal
SHAREHOLDERS at Staffordshire pubco Punch Taverns have agreed to the disposal of the group’s 50% stake in drinks wholesaler and distributor Matthew Clark.
The Burton-upon-Trent group said last month that it had agreed to sell its shareholding in the company to Conviviality Brands, a wholly-owned subsidiary of Conviviality Retail, for £100.7m.
The deal includes a dividend of £1.5m that will be paid by Matthew Clark to subsidiary Punch Finco prior to completion.
The Matthew Clark business is a 50/50 joint venture between Punch and Hertford Cellars, which is a subsidiary of Accolade Wines. As part of the same transaction, Hertford Cellars will also be disposing of its 50% shareholding in Matthew Clark to Conviviality Brands, so that following completion Matthew Clark will be wholly owned by Conviviality Brands.
The disposal, because of its size in relation to the company, was conditional on the approval of Punch shareholders, which was given at a general meeting yesterday.
The deal is now expected to complete within the next two weeks.
Bristol-based Matthew Clark is a leading drinks wholesaler and distributor, delivering to approximately 17,000 on-trade premises across the UK.
The company reported consolidated revenue of £811.2m and pre-tax profit £17m for its last financial year, ended February 28, 2015.
The net cash proceeds of the disposal, likely to amount to £98.7m after costs and expenses are expected to be used to support Punch’s strategic objectives, maintain an appropriate level of net debt and/or for general corporate purposes.
