Punch Taverns pub estate to be split under joint £402m takeover by Heineken and Patron Capital

A Punch Taverns pub.

A Punch Taverns pub. - Credit: Archant

Punch Taverns has agreed to carve up its pub estate as part of a takeover by Heineken and Patron Capital.

The deal, which values Punch at £402.7m, will see Dutch beer giant Heineken snap up 1,895 pubs and private equity firm Patron 1,329 after the duo successfully fought off a rival bid led by the pub chain’s co-founder Alan McIntosh.

Punch said the deal has the blessing of its top three shareholders, representing 52.3% of the firm, and the company’s directors intend to recommend that investors vote in favour of the deal.

Stephen Billingham, Punch chairman, said: “While the board did not solicit this offer for the company, we believe this is a good outcome for shareholders as the offer provides cash certainty at a significant premium.”

Heineken already owns Star Pubs & Bars which has a portfolio of 1,100 pubs in the UK.

Stefan Orlowski, regional Europe president for Heineken, said: “This transaction is a significant step forward in our strategy to unlock value in the UK pub market. Leveraging our extensive experience will enable us to realise increased potential from the pubs we are acquiring and deliver positive returns to our shareholders.”

Patron said that it expects to continue to pursue key elements of the current Punch management team’s strategy.