HK property developer acquires Greene King

British pubs group Greene King reported a 2 percent increase in full-year profit on Thursday as a 31 percent rise in food sales offset the impact of a smoking ban

British pubs group Greene King reported a 2 percent increase in full-year profit on Thursday as a 31 percent rise in food sales offset the impact of a smoking ban

The Campaign for Real Ale (CAMRA) national chairman Nik Antona outlined his concerns and called for the new owners to safeguard the jobs of those working at Greene King.

"[Greene King] recently carried out a revaluation of its property estate that indicated a market value of £4.5bn against the £3.5bn book value", Wilson said.

Greene King shares 50% to 847p on Monday afternoon.

But Canaccord Genuity wondered if there was still a possible counter-bidder to be flushed out, noting that it had long held the view that the major asset-intense pub companies were potential targets for major brewers wishing to enter the United Kingdom market, with the most obvious bidder being Molson Coors.

British pub operator Greene King GNK.L has agreed to a 2.7 billion pounds cash bid from a Hong Kong-listed company founded by the territory's richest man, which said it was seeking to increase its presence in Britain.

The transaction values the pub and brewery business at £2.7bn and includes £1.9bn of debt liability.

Surprise Crude Draw Fails To Send Oil Higher
According to the EIA, for the United States and Russian Federation , petroleum and natural gas production is nearly evenly split. Russia's crude oil and natural gas production also reached record levels in 2018, encouraged by increasing global demand.

CK said that, even with the Brexit departure date just around the corner, pubs will continue to be "an important part of British culture".

George Magnus, economist and non-executive chairman designate of CK Bidco, said: "CKA's strategy is to look for businesses with stable and resilient characteristics and strong cash flow generating capabilities".

The move by Li, whose interests range from telecommunications to real estate, comes amid a decline in the pub trade with hostelries shutting down across the UK.

In its announcement on the CKA deal, Greene King reassured that there were no plans for "material changes" to be made to group and management staff numbers nor an intention to "initiate any material head-count reductions within the Greene King organisation as a result of the acquisition".

"Such a huge move from an global player is certainly encouraging as October 31 looms".

However, a few analysts have stated that the cash value could become higher, with the possibility of the value going up to 950 pence per share, which would be viewed as a more attractive exit price for maintaining shareholder consent. I think we can comfortably expect more pub closures. "It's a whopping price that implies CKA sees significant value in the property portfolio".

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.