It’s been announced today that Greene King is to be sold to CK Noble, a wholly owned subsidiary of CK Asset Holdings Limited, which is based in Hong Kong.
The announcement has stated that the boards of CK Noble and Greene King plc are pleased to announce that they have reached agreement on the terms of a recommended cash offer by CK Bidco for the entire issued and to be issued share capital of Greene King, not already owned by or on behalf of the CKA Group.
Under the terms of the Acquisition, each Greene King Shareholder will be entitled to receive 850 pence for each Greene King share.
Commenting on the Acquisition, George Colin Magnus, OBE, BBS, Non-executive Chairman Designate of CK Bidco, said: “CKA’s strategy is to look for businesses with stable and resilient characteristics and strong cash flow generating capabilities. The UK pub and brewing sector shares these characteristics and we believe that 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.”
Commenting on the prospect of working with Greene King’s team, Gerald Ma, Executive Committee Member and General Manager, Corporate Business Development Department of CKA said:
“We have come to know Greene King well as we have been an owner of a portfolio of pubs which have been leased to them since late 2016. We share the strategy which Greene King has set out in its recent results announcement, that is to focus efforts on developing the brand, enhancing the service offering, training and retaining talent, executing an active estate management strategy, and all under a prudent financial management policy. I look forward to working closely with the management team as we embark on the next stage in the company’s growth.”
Nick Mackenzie, Chief Executive of Greene King said: “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.”