Usurper Greene King snaps up Capital Pub

19th Jul 2011 07:10

After a fractious courtship with Fuller Smith & Turner, London-based pub group Capital Pub Company has fallen into the arms of rival pub group Greene King, which has agreed to pay 235p a share for Capital.The agreed offer, which values Capital Pub at about £70m, is substantially ahead of the 200p Fuller's was willing to stump up for the operator of more than 30 pubs in the London area. Fuller's responded to the announcement today saying it has "no intention" of coming in with another offer.Capital turned its nose up not just at the price Fuller's was offering, but the idea that it could become part of a big pub chain, pointing out that as an independent freehold pub company it is a "scarce and valuable asset." Yet Capital's chief executive said today that Greene King and Capital are "an excellent cultural fit."Snapping up Capital gives Greene King, which unlike Fuller's has a strong presence outside the south of England, welcome exposure to the lucrative London pub market."Capital Pubs would bring a further 34 premium pub assets and take our Greater London estate to approximately 250 at a time when London is outperforming the national pub market," Greene King chief executive Rooney Anand said."This offer represents a fair price for a high quality, largely freehold pub estate."Capital Pubs chief executive Clive Watson said: "Greene King is renowned for nurturing the businesses it acquires and I have every confidence that Capital Pubs will continue to develop under its ownership. "We have recommended Greene King's deal to shareholders as we believe it reflects both our high quality business and its prospects."---RG