4th Nov 2014 07:50
LONDON (Alliance News) - Greene King PLC said on Tuesday it has reached an agreement with the board of Spirit Pub Company PLC to acquire the company, potentially bringing an end to the takeover battle for the pub company.
FTSE 250-listed pub group Greene King said that under the terms of the deal, Spirit shareholders will get 0.1322 new Greene King shares per Spirit share, plus 8 pence per share in cash payable by Spirit in dividends.
Spirit will pay 1.5 pence per share in its proposed final dividend for 2014 and will pay a special interim dividend to shareholders of 6.5 pence per share to cover the remainder of the consideration.
The deal values Spirit shares at 115 pence per share and values the entire company at around GBP773.6 million. The valuation is an approximate premium of 52.2% against the 75.5 pence per share closing price of Spirit shares on September 22, the last day prior to the opening of the offer period.
Following completion of the deal, Spirit shareholders will own approximately 28.9% of the combined company, with Greene King shareholders owning the remaining 71.1%.
Spirit has been the subject of a takeover battle between Greene King and Irish drinks company C&C Group PLC.
By Sam Unsted; [email protected]; @SamUAtAlliance
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