Whitbread makes £36m offer for CoffeeHeaven

15th Dec 2009 07:02

Costa Coffee owner Whitbread has offered to buy Eastern European coffee shop operator CoffeeHeaven for about £36m.The recommended offer of 24 pence in cash represents a premium of around 25% to the closing price of 19.25 pence per CoffeeHeaven share on 11 June 2009, being the last business day prior to the announcement by the AIM-listed company that it is in early stage takeover talks.CoffeeHeaven, which operates 90 coffee shops in Central and Eastern Europe, will be managed as a subsidiary of Costa.'This quality acquisition offers compelling shareholder, brand and operational benefits. It is an important step forward in achieving Costa's strategic objectives and international growth ambitions,' said John Derkach, Managing Director of Costa.'This transaction will give Costa a strong position in the important and rapidly growing Central and Eastern European market, with clear opportunities for synergies as well as a new pipeline of stores for the future.'Richard Worthington, executive chairman of CoffeeHeaven said: 'We believe that the offer from Costa announced today recognizes not only our commercial success but also the exceptional talent and achievement of the whole coffeeheaven team.' 'Shareholders now have the opportunity to accept a cash offer for their shares at an attractive level compared to the share price prior to the commencement of the offer period,' he added.CoffeeHeaven announced in June that it was in discussions that may lead to an offer. Both CoffeeHeaven and Whitbread confirmed earlier this month that they are in 'advance talks' about a 24p a share takeover.