Reuters - Hot Stocks

UPDATE 1-Punch Taverns agrees to takeover from Heineken and partner

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Dec 15 Dutch brewer Heineken NV and its investment partner Patron Capital have agreed a 403 million pound ($ 503 million) takeover offer for British pubs group Punch Taverns Plc, the companies said on Thursday.

Punch, Britain’s second-largest pub operator, said the deal had received support from its top three investors representing about 52.3 percent of Punch’s existing share capital.

Each Punch shareholder would receive 180 pence per share in cash representing a premium of more than 40 percent to Punch’s Tuesday close, a day before a potential deal was first reported.

Punch shares jumped a further 8 percent to trade at 191p by 1403 GMT.

The deal agreed on Thursday values Punch at 402.7 million pounds, with Heineken contributing 305 million pounds of the total.

Heineken is unusual among brewing groups in that it has an existing portfolio of about 1,100 pubs, most bought from Royal Bank of Scotland in 2011.

The deal would add 1,900 pubs to Heineken’s existing portfolio, with real estate investment group keeping more than 1,300 sites.

The deal could boost the number of Heineken pubs selling the Dutch group’s beers, including Amstel, Sol and Lagunitas alongside Strongbow cider and its green-bottled Heineken lager.

Punch said on Wednesday it had received two takeover approaches, a possible 174 pence per share offer from Heineken and its partner and a higher 185 pence per share bid from Emerald Investment Partners, founded by Alan McIntosh, the pub group’s former finance director.

It was not immediately clear how Emerald planned to respond.

Punch is being advised by Goldman Sachs while Heineken is being advised by Nomura. ($ 1 = 0.8019 pounds) ($ 1 = 0.8013 pounds) (Reporting by Rahul B in Bengaluru; editing by Jason Neely)

Reuters: Hot Stocks

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