British pub giant and brewer Greene King have agreed to be bought by a subsidiary of CK Asset Holdings, the flagship of the CK Hutchison Group.
Greene King owns over 2700 pubs and restaurants across the UK, and the deal values the company at £2.7bn.
The company’s chairman, Philip Yea, commented: “The Greene King board is confident in the long term prospects of the business but believes this offer represents a good opportunity for shareholders to realise value for their investment at an attractive premium, while also ensuring the future success of Greene King for employees, partners, customers and suppliers. We are therefore unanimously recommending it to our shareholders.”
Chief executive Nick Mackenzie continued: “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.”
Following the announcement, shares in Greene King rose 52% to 854p a share.