27th Feb 2020 16:43
(Alliance News) - Pub operator Ei Group PLC on Thursday said the High Court of Justice in England & Wales has approved the acquisition of the company by Stonegate Pub Co Ltd.
Therefore, Ei shares will be suspended on March 2, the acquisition will complete on March 3, and shares in Ei will be cancelled from trading on the London Stock Exchange's main market on March 2.
In July 2019, Ei - formerly know as Enterprise Inns - agreed to a GBP1.3 billion takeover offer from Slug & Lettuce-chain owner Stonegate. In December, the CMA said the acquisition did not raise UK-wide competition concerns but noted that there was a possibility that competition may be lessened in 51 local areas and could result in price increases, or lower-quality products and services.
In January, Stonegate submitted undertakings offering to divest 42 pub sites in order to address the concerns raised by the competition regulator regarding the 51 local areas. The undertakings were accepted by the CMA earlier in Friday and came into effect immediately.
On Thursday, Ei said that the High Court has sanctioned the scheme of arrangement by which the acquisition is being implemented.
Ei shares closed 0.1% lower at 284.60 pence each on Thursday in London.
By Ife Taiwo; [email protected]
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