CK Bidco (CKB) – a newly incorporated subsidiary of Hong Kong-based property developer CK Asset Holdings – announced plans to snap up the Greene King business in a deal that valued the UK pub operator at £4.6bn.
The move valued the company’s shares at 850p, with CKB paying £2.7bn and taking on £1.9bn of debt.
Reassurances made
At the time, a spokesman for Greene King said the two companies already had a relationship, with CKB owning a number of freeholds of the Suffolk-based businesses pubs. He went on to say the company had made reassurances that it would continue to maintain the Greene King name and its existing support centres in Bury and Burton, and plans to invest in the business.
The deal was approved by the pubco and brewer’s shareholders earlier this month (9 October). The approval meant Hong Kong’s richest man, Li Ka-Shing, will become the owner of one of the UK’s largest pub estates.
Some 99.4% of shareholders overwhelmingly backed the takeover bid. In a statement, Greene King chairman Philip Yea said the board welcomed the approval from shareholders.
Good opportunity
Yea said the company believed in CKB’s long-term vision for Greene King, supported by the pubco's established position in the market.
He added: “The offer represents a good opportunity for shareholders to realise value for their investment at an attractive premium, while also ensuring the long-term success of the company.”
MCA also reported, as part of the acquisition, each of the Greene King non-executive directors will resign as directors of the business.
George Magnus, Gerald Ma, Peter Macnab, Andrew Hunter and David Dyson will be appointed as directors of Greene King with immediate effect.
