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Ka-Shing! Hong Kong’s richest man to buy Greene King for £2.7bn

Li Ka-Shing is paying 850p per share for Greene King, 51% above last Friday’s closing price

Greene King - Ka-Shing! Hong Kong’s richest man to buy Greene King for £2.7bn
Ka-Shing is rumoured to be worth around US$30bn

Greene King PLC (LON:GNK) is set to be taken over by Hong Kong’s richest man as part of a deal that values the pub and brewery group at £2.7bn.

Including debt, the takeover by billionaire Li Ka-Shing’s CK Asset Holdings values Greene King at closer to £5bn.

READ: Greene King holds divi despite soaring costs knocking annual profits

Under the terms of the acquisition, investors will receive 850p in cash for each of their shares – some 51% above Friday’s closing price.

As well as the offer price, shareholders will also be able to collect their 24.4p a share dividend which is due to be paid in three weeks’ time.

“The Greene King board is 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,” said chairman Philip Yea.

“We are therefore unanimously recommending it to our shareholders.”

Pubs ‘will remain a key part of British culture’

CK said that, even with the Brexit departure date just around the corner, pubs will continue to be “an important part of British culture”.

It already has a small portfolio of freehold pubs, all of which are leased out to Greene King.

“We share the strategy which Greene King has set out in its recent results announcement, that is to focus efforts on developing the brand, enhancing the service offering, training and retaining talent, executing an active estate management strategy, and all under a prudent financial management policy,” said CKA’s corporate business development general manager, Gerald Ma.

Greene King shares 50% to 847p on Monday afternoon.

Quick facts: Greene King

Price: 847.8 GBX

LSE:GNK
Market: LSE
Market Cap: £2.63 billion
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