Sheps AGM hears about mystery bid

A mystery bidder offered Shepherd Neame around £100m for its freehold pubs in a share-and-leaseback deal earlier this year - but the offer was rejected.

The potential deal came as a surprise to shareholders attending last week's AGM, who had not been told at the time.

Bobby Neame, who stood down as chairman at the meeting, confirmed there had been 'an informal letter from a property owner', but that 'it did not reflect anywhere near the true value of the company'.

He said that the initial approach was followed by further discussions over a higher value - but no formal offer emerged.

He said: 'If there had been a formal offer. Obviously we would have submitted it immediately to the shareholders for consideration.' And he added: 'If there had been a situation like that, we would have put the company on the market and seen what could have been achieved.'

However, he said that Shepherd Neame shareholders had previously indicated their desire to remain independent, and were concerned not to lose their 'immense' inheritance tax advantages if such a deal was concluded.

Former director Stuart Neame, who had asked about the deal, questioned whether tax benefits would actually be lost if just the freeholds were sold and the company remained on the Ofex stock market.

But a spokesman for Shepherd Neame said the board had been concerned that selling its freehold assets could make it more vulnerable to takeover, and that this might then lead to an exit from Ofex, thus incurring tax disadvantages.