Punch still looking at Spirit despite Avebury acquisition
Punch Taverns' recent £219m purchase of the Avebury estate is unlikely to sway the group from hoovering up a significant chunk of Spirit Group's portfolio.
Punch, led by chief executive Giles Thorley (pictured), was expected to make an announcement earlier this month that it was in talks with Spirit Group to buy around 1,200 of its managed pubs and convert them into leasehold outlets, yet such a declaration never materialised.
But even now, with the 409-strong Avebury Taverns estate to finance and integrate, a move on selected Spirit outlets is still believed to be on the cards.
"More deals are possible," says Oriel Securities' Mark Brumby, "and in our opinion likely, but Spirit would be a large one." He added that depending on the number of Spirit's pubs Punch was now eyeing up, "the possibility of a fund-raising [exercise] has to have been marginally increased, post the Avebury purchase".
The move on Avebury means that Punch Taverns now operates around 8,200 pubs, some 700 outlets behind market leader Enterprise Inns.
Meanwhile, the number of interested parties stalking Spirit Group is dwindling fast. Hg Capital is understood to have been one of a number of potential buyers interested in bidding for a tranche of the Spirit estate, but has subsequently walked away.
Together with ex-Pubmaster boss John Sands, Hg had expressed interest in a number of Spirit's outlets, but a series of negative factors, including what has been described as "unsustainable rent levels", meant a deal was no longer considered worth chasing.
One unidentified party is said to be still pursuing its interest in these pubs.
Related articles:
Punch buys Avebury Taverns (18 July 2005)
