CK Asset Holdings Ltd. is offering to purchase all the share capital that it does not already own in Greene King PLC for an aggregate cash consideration of £2.7 billion.
The Hong Kong-listed property company is buying the British integrated brewer and pub retailer through its CK Noble (UK) Ltd. subsidiary, subject to the satisfaction of various conditions, including the approval of at least 75% of target's shareholders and the High Court of Justice in England and Wales. Completion of the transaction is expected in the fourth quarter.
The £8.50-per-share takeover bid represents a roughly 9.5x premium to Greene King's £482 million EBITDA for the 52-week period ending April 28, according to a filing.
CK Asset noted that it plans to delist Greene King's shares from the London stock exchange and the Financial Conduct Authority once the takeover takes effect.
As of Aug. 16, CK Asset owns an indirect stake of about 2.9% in Greene King, which manages 1,687 pubs as of April 28 and operates 2,700 pubs, restaurants and hotels across the U.K., the developer added.
Clifford Chance LLP is serving as CK Asset's legal adviser, while Linklaters LLP functions in the same capacity for Greene King.
