Propel Morning Briefing Mast Head Propel Hospitaliity website Paul's Twitter Link Subscribe Unsubscribe Web Version Forward Email Hobgoblin Banner Morning Briefing Strap Line
Tue 26th May 2015 - Update: GK to sell 16 pubs, Stonegate lines up float
Greene King to sell just 16 pubs to meet competition concerns: Greene King has offered to sell 16 pubs to address competition concerns in relation to its anticipated acquisition of Spirit Pub Company. The offer, which the Competition and Markets Authority (CMA) has indicated is sufficient to meet competition concerns, is far fewer than many analysts thought might need to be sold, with a number as high as 100 pubs quoted. The figure is even lower than the number suggested by The Sunday Telegraph which claimed 30 would need to be sold. Of the 16 pubs identified to be sold, nine are Greene King pubs and seven are Spirit pubs, while ten are managed pubs and six are tenanted or leased pubs. The acquisition of Spirit will be complete before the end of June. Rooney Anand, Greene King's chief executive, said: “This is a great result. The CMA has confirmed that only a small number of pubs will have to be sold in order for us to complete the acquisition of Spirit, which means that both the profit impact and business disruption are minimised. We believe this outcome is fair and sensible and ensures we can create the UK’s leading pub company and deliver significant financial benefits to both sets of shareholders.” Earlier this month, the CMA announced that it would refer the acquisition for an in-depth investigation unless the companies offered acceptable undertakings to address concerns about a loss of competition in 16 local areas. The CMA’s initial investigation found that in those 16 areas, Spirit and Greene King were in close proximity, were each other’s key rivals and did not face sufficient competition from other outlets, which could lead to an increase in prices or a deterioration in the quality of the offering for customers, it said. The CMA said Greene King had now offered to sell 16 pubs in order to address the competition concerns identified and, for managed pubs, transfer Greene King/Spirit staff to whoever buys the pub. The authority said today that there were "reasonable grounds for believing that the undertakings offered by Greene King, or a modified version of them" might be accepted instead of a more detailed phase 2 merger investigation. The CMA now has until 21 July to consider whether to accept the undertakings, or a modified version. It said it may decide to extend the deadline if it considers there are special reasons for doing so. The CMA said it will shortly undertake a public consultation on whether Greene King's proposal is sufficient to address the competition concerns. If the undertakings are not accepted by the CMA, the acquisition will be referred for a more detailed merger investigation.

Sky News – Stonegate lines up 2016 float:
Stonegate Pub Company, which operates pub brands including Slug & Lettuce and Yates, and is owned by TDR Capital, is preparing to float on the London stock market, Sky News has reported. Sky said that Stonegate, which is the UK's fourth-largest owner of managed pubs, has begun sounding out investment bankers about a listing that would probably take place during the course of 2016. The TV channel claimed that insiders said Stonegate, which was formed in 2010 from the acquisition by TDR Capital of 333 pubs from Mitchells & Butlers, was likely to be valued at just under £1bn, including approximately £300m of debt. Sky said: "A listing would be the first by a major pubs operator for some time and would follow an intense period of restructuring by many of Stonegate's rivals, such as Punch Taverns. TDR, which also owns businesses including David Lloyd Leisure, the health and fitness clubs operator, is expected to appoint bankers to work on the listing shortly. A flotation would not take place before the end of this year, a source said. In total, Stonegate owns more than 600 pubs and bars across the UK, with formats ranging from high street pubs and traditional country inns to local community pubs, student pubs and late-night bars and venues. Since its initial deal with M&B, Stonegate has grown through further acquisitions, including that of Town & City Pub Company in 2011 and assets owned by Living Room and Bramwell Pub Company two years ago. Britain's pubs sector was battered by the financial crisis and the ban on public smoking, but the fortunes of some operators have recovered since then as they have focused on cost-cutting amid an improving economy. M&B, which has a market value of nearly £1.9bn, has seen its shares rise by more than 10% during the past year, while shares in Enterprise Inns, which has a larger tenanted pubs estate, have risen more modestly over the same period."

Return to Archive Click Here to Return to the Archive Listing
Punch Taverns Link
Return to Archive Click Here to Return to the Archive Listing
Propel Premium
Toggle Banner
Taylors of Harrogate Banner
Harri Banner
Bord Bia Banner
Swifty Banner
Lifebuoy Banner
BrewDog Banner
Eagle Eye Banner
Interiors UK Banner
Ei Group Banner
Trail Banner
Yumpingo Banner
Bizimply Banner
Lucky Saint Banner
Hello Beer Banner
Taylors of Harrogate Banner
Chika's Banner
The Vegetarian Butcher Banner
Zonal Banner
Pago Banner
Access Banner
Ten Kites Banner
Prestige Purchasing Banner
IOL Banner
COREcruitment Banner
Startle Banner
Bums on Seats Banner
Punch Taverns Link Punch Taverns Link
Twinings Banner
ALMR Web Link Web Version Unsubscribe Subscribe Propel Info website