Shares in British pub chain Punch Taverns soared over 35 percent on Wednesday after it said it had received two competing takeover offers.
Both the Dutch brewer Heineken and one of the pub group’s founders have approached Punch with offers. Heineken initially offered 174p per share, which was beaten by a bid from co-founder Alan McIntosh’s investment company at 185p.
Punch Taverns own more than 3,500 pubs across the UK, and was already in advanced discussions with Patron Capital Advisers about a potential 174p a share takeover offer. In a statement, the company commented on all three approaches:
“The Board confirms that it has received a proposal from Patron Capital Advisers LLP regarding a possible cash offer for Punch at 174 pence per Punch share.
“The Board is in advanced discussions with Patron and Heineken regarding the Patron Proposal.
“The Board also confirms that it has also received an approach from Emerald Investment Partners Limited regarding a possible cash offer for Punch at 185 pence per Punch share.
“The [proposal fro] Emerald is conditional on, amongst other things, arranging committed financing, confirmatory due diligence, and the recommendation of the Board. The Board is in discussions with Emerald regarding the Emerald Proposal.”
The company have recently recovered from a difficult time, with excessive debt restructuring leading to the posting of a £60 million profit last month after recording a £105 million loss the year before
The company added that “There can be no certainty that any firm offer will be made by either Patron or Emerald. A further announcement will be made in due course.”
The two parties have until January 11 to make final offers.
Punch Tavern’s (LON:PUB) shares are currently trading up 38.91 percent at 178.50 (1445GMT).