Shares in FTSE 250 company Greene King (GNK) soared more than 50% in late trade on Monday after the pubs operator and brewer agreed its £2.7bn sale to Hong Kong property firm CKA.
Greene King, famous for its IPA beers, struck a deal that will see shareholders get 850p per share. The stock had closed out last week worth 563p but is now changing hands at 849p, suggesting that the deal is as good as done.
A GOOD DEAL FOR EVERYONE
‘The Greene King board is confident in the long term prospects of the business but believes this offer represents a good opportunity for shareholders to realise value for their investment at an attractive premium, while also ensuring the future success of Greene King for employees, partners, customers and suppliers,’ said Philip Yea, chairman of Greene King.
‘We are therefore unanimously recommending it to our shareholders.’
Greene King is one of Britain’s biggest pubs operators, running sites across the length and breadth of the UK.
VALUABLE PROPERTY ESTATE
More than 80% of these pubs are either owned outright or are on long-term leases agreements.
The company recent revalued its property estate at £4.5bn, according to analysts that follow the company. That was up from a previous book value of £3.5bn.
Investors also chased the shares in pubs peer Marston’s (MARS) higher on Monday, presumably betting that it could also be targeted by a buyer.
Marston’s shares rallied 9.5% to 115.4p, valuing the smaller business at approximately £730m.