CK Noble, a wholly-owned subsidary of Hong Kong-based CK Asset Holdings Limited, announced it has reached agreement with the Greene King board for a cash offer for the UK brewer.
The move values the company’s shares at 850 pence, with CKA paying £2.7bn and taking on £1.9bn of debt, and will be subject to the approval of Greene King shareholders, with the company’s board of directors recommending they vote in favour of the deal.
Already had a relationship
A spokesman for Greene King said the two companies already had a relationship with CKA owning a number of freeholds on the Suffolk-based businesses pubs. He went on to say the company had made reassurances that they would continue to maintain the Greene King name and its existing support centres in Bury and Burton and plan to invest into the business.
George Magnus, non-executive chairman designate of the bidding company, said: “We believe this sector will continue to be an important part of British culture and the eating and drinking out market in the long run. Greene King, being a leading integrated pub retailer and brewer with strong real estate backing, is well positioned to capture the opportunities that lie ahead.
“We are proud of our track record in the UK and our philosophy is to support strong management teams and provide investee companies with access to patient capital in order to create sustainable long-term value."
Nick Mackenzie, chief executive of Greene King, added: "Greene King has a well-invested estate in prime locations, leading brands, a rich history and a talented team of c.38,000 people serving millions of customers across the country every week.
“CKA is an experienced UK investor and shares many of Greene King's business philosophies.
"They understand the strengths of our business and we welcome their commitment to working with the existing management team, evolving the strategy and investing in the business to ensure its continued long term growth."