Marston’s PLC (LSE:MARS) shares rose 20% following Carlsberg's announcement of a £206 million acquisition of Marston's 40% stake in their joint venture, Carlsberg Marston's Brewing Company (CMBC).
This deal, valued at 14.5 times last year's earnings, allows Marston's to accelerate the repayment of its nearly £1 billion debt and save £18 million in interest payments, making the transaction earnings accretive.
"At the headline line, we see it broadly neutral on EPS, modestly dilutive on FCF and NAV [free cash flow and net asset value, but significantly enhancing balance sheet metrics, with Marston’s destiny now very much in management's hands," said broker Shore Capital, reiterating its 'buy' recommendation.
In early trading, the stock was up 6.3p at 37p.