Punch Taverns scrapes through £375m share placing vote

By Hamish Champ

- Last updated on GMT

Related tags: Stock market, Voting, Stock, Punch taverns, Punch

Punch Taverns has achieved shareholder approval for its £375m share placing - but only just. The group needed 75 per cent of the votes cast at...

Punch Taverns has achieved shareholder approval for its £375m share placing - but only just.

The group needed 75 per cent of the votes cast at today's EGM to be logged in favour of the fund raising exercise, proceeds from which will be used to pay down debt.

When the votes were counted it became clear that 75.14 per cent of the votes cast were in favour, with nearly 40 million votes cast against the placing.

A spokesman for the pubco said Punch had achieved what it set out to gain, which was shareholder support for the placing.

The group had a "very, very complicated share register and the market understands that", he added, as the group's shares rose on the news that the placing had been given the go-ahead.

"This is not about a large number of shareholders voting againt the placing. But it was a very close vote in terms of those cast, so yes, one can understand people saying that they scraped through.

"However it shouldn't be taken that this represents a groundswell of opinion against the decision to raise money in this way," he added.

Around 55 per cent of Punch's shareholder register voted on the placing resolution, with 60 institutions giving their assent, the spokesman said.

The bulk of the votes cast against are believed to have been lodged by US private equity vehicles QVT and Greenlight, both of whom have been highly critical of Punch's strategy in the past.

Related topics: Punch Pubs & Co

Property of the week

Follow us

Pub Trade Guides

View more