Dutch brewing company Heineken International is in advanced talks to buy UK pub giant Punch Taverns.
In this regard, the pub chain said that it is in advance talks with Patron Capital Advisers which is proposing to buy it.
Heineken would immediately acquire Punch Taverns from Patron after its offer to the pub group is completed.
Punch Taverns said that the proposal depends on several aspects, including a recommendation of its board which is in advanced discussions with both Patron and Heineken regarding the possible deal.
The pub chain with 3,000 pubs across the UK has been valued at around £390m going by Heineken and Patron’s bid, reported The Guardian.
According to the publication, Heineken will immediately acquire nearly 1,900 pubs from Patron if the deal goes through as planned while leaving the latter with around 1,300 pubs.
Heineken is facing competition in the acquisition from Emerald Investment Partners which has offered to acquire Punch Taverns at a higher price of 185p pence per share.
Emerald Investment Partners’ founder Alan McIntosh is also the co-founder of Punch Taverns.
Punch Taverns said that the proposal from Emerald is dependent on different aspects that includes arrangement of committed financing, its board recommendation and confirmatory due diligence.
It added that its board is in discussions with Emerald as well relating to their acquisition bid.
Both the offers from Heineken’s and Emerald’s are likely to be made in cash.
A statement released by Punch Taverns on the two offers read: “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 UK pub chain company has given a deadline of January 11, 2017 for Patron Capital Advisers and Emerald Investment Partners to announce their intent to acquire it formally.
