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CK Asset Holdings acquisition of Greene King gets approval from European Commission
Posted on Friday, 18 October 2019 14:09
The European Commission has given the green light to the planned acquisition of UK-headquartered pub operator Greene King by CK Asset Holdings.
Back in August, the buyer agreed to buy the company for GBP 8.50 per share in cash, representing an enterprise value of GBP 4.60 billion on a fully-diluted basis, by way of a scheme of arrangement.
The offer, which was unanimously recommended to shareholders by the board, represents a premium of 51.0 per cent over Greene King’s close of GBP 5.63 on 16th August, the last trading day prior to the deal’s announcement.
Completion was originally slated to take place during the fourth quarter of this year, subject to approval from shareholders and the European Commission.
Both of these approvals have now been received, but the deal still needs to be given the thumbs up by the court at a sanction hearing, which is scheduled for 29th October.
Closing is now expected to occur on 30th October, with Greene King stock to be cancelled by 08:00 on 31st.
Greene King claims to be the leading pub retailer and brewer in the UK, with 2,700 pubs, restaurants and hotels across the country.
In addition to its eponymous brand, the company operates locations under the Chef & Brewer, Farmhouse Inns and Hungry Horse names.
The company posted revenue of GBP 2.22 billion in fiscal 2019, up from GBP 2.18 billion over the preceding 12 months.
Earnings before interest, taxes, depreciation and amortisation stood at GBP 482.00 million for the year, compared to the GBP 486.60 million generated in FY 2018.
CK Asset Holdings’ acquisition of Greene King is the largest deal targeting an operator of drinking places to have been announced worldwide during 2019 to date, according to Zephyr, the M&A database published by Bureau van Dijk.
It is followed by a USD 3.27 billion acquisition of UK-based EI Group by Stonegate Pub Company, which was announced in July and is slated to close in the opening quarter of next year.
© Zephus Ltd