Greene King to be sold to Hong Kong property giant

An offer of �2.7bn has been made for Greene King, which is based in Bury St Edmunds Picture: GREENE

An offer of �2.7bn has been made for Greene King, which is based in Bury St Edmunds Picture: GREENE KING - Credit: Archant

A Hong Kong multinational is poised to snap up Bury St Edmunds-based pubs and brewery giant Greene King as part of an eye-watering £2.7bn deal.

Bury St Edmunds MP will be seeking assurances about jobs at Greene King Picture: ARCHANT

Bury St Edmunds MP will be seeking assurances about jobs at Greene King Picture: ARCHANT - Credit: Archant

The Greene King board has recommended approving a deal which would see the firm being bought by CK Asset Holdings - but its Suffolk headquarters is safe.

The property development and investment firm, which has had dealings with Greene King through a portfolio of pubs leased to it, is making the offer through a wholly-owned subsidiary known as CK Bidco.

The board at Greene King, which has earnings of around £482m and employs 38,000 staff across the UK, is unanimously recommending the deal to shareholders, who will have a chance to vote on it later in the year.

Greene King is poised to be sold to a Hong Kong multinational Picture; VISMEDIA

Greene King is poised to be sold to a Hong Kong multinational Picture; VISMEDIA - Credit: PA

MORE: Union and MP seek assurances over jobs as Greene King announces mega £2.7bn sale deal

Board chairman Philip Yea said they were "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".


You may also want to watch:


Chief executive Nick Mackenzie said: "Greene King has a well-invested estate in prime locations, leading brands, a rich history and a talented team of circa 38,000 people serving millions of customers across the country every week.

Greene King shareholders are being offered �2.7bn for the company Picture: GREENE KING

Greene King shareholders are being offered �2.7bn for the company Picture: GREENE KING - Credit: Greene King

"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."

Most Read

George Magnus, chairman designate of CK Bidco, said it looked for businesses with "stable and resilient" characteristics and strong cash flow.

"The UK pub and brewing sector shares these characteristics and we believe that this sector will continue to be an important part of British culture and the eating and drinking out market in the long run," he said.

"Greene King, being a leading integrated pub retailer and brewer with strong real estate backing, is well positioned to capture the opportunities that lie ahead."

Nick Mackenzie, chief executive of Greene King Pictture: ADAM SMYTH

Nick Mackenzie, chief executive of Greene King Pictture: ADAM SMYTH - Credit: Archant

MORE - Is mega £2.7bn Greene King sale deal bad for UK's beer scene?

Become a Supporter

This newspaper has been a central part of community life for many years. Our industry faces testing times, which is why we're asking for your support. Every contribution will help us continue to produce local journalism that makes a measurable difference to our community.

Become a Supporter
Comments powered by Disqus