Greene King To Buy 4 Pubs From Punch Taverns For GBP5.3M

11th Jun 2010 07:07

LONDON (Dow Jones)--Greene King PLC (GNK.LN) Friday announces an agreement to buy four pub restaurants from Punch Taverns PLC (PUB.LN) for GBP5.3 million. MAIN FACTS: -The consideration will be financed from the funds raised by the Company's rights issue -Expected to complete on July 8. -Sites are in Aberdeen, Northampton and Nottingham and meet the strict strategic and financial criteria set out at the time of the rights issue. -In the year to August 2009, these sites generated EBITDA of GBP342,000. -Expects, following targeted capital investment and operational synergies from integration into Greene King, that these sites will return to more normalized, historic trading levels, equating to seven time EBITDA. -They are freehold retail sites in great locations currently trading below their potential. -To convert the sites into market-leading pub restaurant brands, Hungry Horse and Eating Inn. -Punch Taverns said the net disposal proceeds will be used to reduce debt and reinvest in the estate. -Greene King shares closed Thursday at 386.8pence. -Punch Taverns shares closed Thursday at 61.9 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires June 11, 2010 02:07 ET (06:07 GMT)