Spirit Pub Co., the owner of more than 1,200 UK outlets including Chef & Brewer and Flaming Grill, is on the verge of being acquired by competitor Greene King Plc after saying that it is willing to recommend a sweetened £723-million ($1.2-billion) bid.
The new proposal is mostly in Greene King shares and values each Spirit share at about 109.5 pence, Staffordshire, England-based Spirit said in a statement. Last month, Spirit rejected an approach that was worth 100 pence a share.
The new bid comprises 0.1322 Greene King shares and 8 pence in cash per Spirit share. Spirit said that shareholders would own about 29 per cent of the new entity and has agreed to an extension of a takeover panel deadline until 5pm on 30 October to let the companies conclude their talks.
Spirit said that its board would be willing to recommend the new offer to shareholders if other terms, which it would not identify, are met. There’s no certainty that any firm offer will be made, it said. Spirit shares have risen 21 per cent since it disclosed Greene King’s initial overture on 23 September.
Bloomberg News, edited by Hospitality Ireland
