Spirit Pub Company has responded to reports that Greene King is considering an offer for it by issuing a release stating:
“The Board of Spirit (the “Board”) notes the announcement by Greene King plc (“Greene King”) that it is considering a possible offer for Spirit.
“On 15 September 2014 the Board received a highly preliminary and conditional approach from Greene King regarding a possible offer for Spirit at a value of 100 pence per Spirit share in Greene King shares (the “Proposal”). The Board reviewed the Proposal in detail and concluded that it undervalued Spirit and its attractive prospects. Accordingly, the Proposal was rejected on 18 September 2014.”
The release continues:
“As announced on 3 September 2014 in the fourth quarter trading update, Spirit continues to deliver strong performance across both the Managed and Leased estates with market leading like-for-like growth and attractive returns on investment. Spirit has a successful strategy of delivering growth through investment in its brands, people, infrastructure and estate, including the acquisition of new pubs.
“The Board remains fully confident in the ongoing execution of Spirit’s strategy as an independent company and that its successful delivery and strong balance sheet will create significant value for shareholders.”
Greene King must clarify intentions by 21 October
As required by the Takeover Code, Greene King is now required, by not later than 5.00 p.m. on 21 October 2014, to either announce a firm intention to make an offer in accordance or announce that it does not intend to make an offer.
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