Pub group reveals £400m takeover approaches
PUNCH TAVERNS, the stock market-listed pub group based in Burton-upon-Trent, has revealed it is in discussions with two bidders about a £400m takeover.
After its share price started to climb in late morning, the group told the stock market it is in “advanced discussions” with Patron Capital Advisers about a 174p-per-share offer, which values the company at £390m.
Punch has also received an approach from Emerald Investment Partners about a potential £410m offer, which is priced at 185p-per-share.
Punch Taverns’ share price was trading around 130p in mid-morning before rising 20% in less than an hour. The shares added another 10% after Punch confirmed the market speculation, taking the price above 170p.
The proposal by Patron, a £2bn private equity real estate fund, would see part of the group immediately sold to Heineken once a deal completed.
Both Patron and Emerald have until January 11 to announce a firm intention to make an offer for Punch.
Staffordshire-based Punch is the country’s second-biggest pub group with annual sales of more than £400m. Last month it confirmed it had returned to profit after three years of results hampered by debt. It has reduced its debt pile by nearly £1bn since 2013, to £1.36bn at its August year-end.
