Heineken lands knock-out blow in Punch bidding war
DUTCH brewing giant Heineken has won the bidding war for Staffordshire pubco Punch Taverns after upping its offer to more than £402m.
Heineken and Patron Capital, using newco Vine Acquisitions as a bidding vehicle, have agreed a deal with Punch to acquire the entire and to be issued share capital of the company for 180p per share – a deal which values the business at £402.7m.
Under the terms of the deal Heineken will acquire from Patron a portfolio of around 1,900 Punch pubs with Patron retaining an additional 1,329 which it will run itself.
The offer has received the support of Punch’s top three shareholders – Glenview Capital, Avenue Capital and Warwick Capital Partners – and of the directors of Punch, who together represent 52.3% of the existing issued ordinary share capital of Punch.
Stephen Green, Senior Partner of Patron Capital, said: “Our offer creates an exciting opportunity for Punch as a more focused business. Under private ownership, with strong financial backing, and a commitment to continued investment, pubs and publicans will have our full support to deal with changing market dynamics and provide their customers with the best possible offer. These are high quality pubs with excellent future potential.”
Stefan Orlowski, Regional President Europe for Heineken, said: “This transaction is a significant step forward in our strategy to unlock value in the UK pub market. The performance of our Star Pubs & Bars business clearly shows that well invested pubs, in the hands of skilled and ambitious independent operators can outperform. Leveraging our extensive experience will enable us to realise increased potential from the pubs we are acquiring and deliver positive returns to our shareholders.”
David Forde, Managing Director of Heineken UK, added: “Today’s announcement is a huge vote of confidence in the Great British Pub. Our proven track record of success demonstrates that well invested and well run pubs in the leased and tenanted sector can thrive. Today’s development is good news for pub-goers across the UK who will see the benefit of better pubs in their communities. We look forward to welcoming new licensees in to Star Pubs & Bars, and to working with them to grow their businesses.”
Stephen Billingham, chairman of Punch Taverns, said: “The Punch board and management team have positioned Punch to drive long term value for shareholders and our recent performance has demonstrated the successful execution of this strategy reflecting the hard work and quality of the whole Punch team. While the board did not solicit this offer for the company, we believe this is a good outcome for shareholders as the offer provides cash certainty at a significant premium.”
