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Greene King's Capital bid unconditional

By Mark Wingett, M&C Report , 22-Aug-2011

Greene King: unconditional offer

Greene King: unconditional offer

Greene King's bid to acquire Capital Pub Company, in a deal that values the 34-strong London pub operator at £70m, has been declared wholly unconditional.


Greene King said that as of 1.00pm on 19 August — the first closing date of the offer, it had received valid acceptances in respect of 19.795 million Capital Pubs shares, representing approximately 73.4% of the issued share capital of the company.


The offer values Capital shares at 235p. In June, Capital rejected Fuller's indicative offer proposal of 200p, which valued the company at close to £54m, unanimously and restated its ambition to operate an estate of 45/50 pubs in London by the middle of 2013.


The offer from Greene King price represented a 51% premium on Capital's closing price of 155.5p per share on 16 June, the day before Fuller's announced its approach for Capital.


Greene King's offer was also a 70% premium to the average closing price of 138p for the proceeding six months.


The deal implies an enterprise value of £93 million for Capital. Capital's board unanimously recommended the offer.