Greenalls sells off pubs to Nomura
Monday 07 December 1998
The pounds 375m deal for the sale of the tenanted or franchised Inn Partnership is due to be announced on Wednesday with Greenall's results for the year to September.
Inn Partnership had sales of pounds 111m in the year to September 1997, and made operating profits of pounds 38.9m.
The price tag is somewhat below the informal pounds 400m-plus initially sought by Greenalls in October, reflecting concernsabout a slowdown in business.
Other potential buyers had included Charterhouse Development Capital and Greene King. But despite the interest, some analysts were concerned that it would not easily find a buyer.
The disposal will nearly wipe out Greenall's borrowings, allowing it to increase investment in its De Vere hotels and Village Leisure health and fitness chain. It is the latest in a series of disposals taking the group away from its brewing past towards a broader series of leisure businesses. It is also the latest in a series of consolidation deals in the pubs sector.
Guy Hands, managing director of Nomura's principal finance unit, earlier this year ruled out new investments. But last week, in a move designed to raise the profile of the businesses it now owns, Nomura announced the creation of its Unique Pub Company, a vehicle for earlier acquisitions.
This already has 2,600 tenanted pubs, expected to make an operating profit of more than pounds 80m this year. It is likely to be floated within two years and Giles Thorley, Unique's chief executive, said a valuation of more than pounds 1bn was expected.
It also has some 1,100 pubs outside this new division.
- 1 Scottish independence: Ireland since 1919 is a lesson for Scotland in what a Yes vote means
- 2 Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
- 3 Lego breaks out of the toy box and heads for the gallery
- 4 Julian Assange and Edward Snowden join piracy mogul Kim Dotcom’s political campaign in New Zealand
- 5 Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Thailand deaths: Pair's bloodied bodies found naked on Koh Tao beach
Jihadi John': MI5 may have identified Isis militant who killed David Haines but options limited
Russia freezes Ukraine into submission: Kiev admits country doesn't have enough fuel for winter
Scottish independence: Police will be on high alert on Friday whatever the result
David Haines beheading: David Cameron says Britain will hunt down Isis 'monsters' shown in video murdering aid worker
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Scottish independence: Yes campaign feels the heat as Alex Salmond's NHS claims come under furious attack
£23m Birmingham cycle scheme is attacked by Tory councillor for not catering to the elderly
Salmond accused of laughing off national debt with ‘what are they going to do: invade?’ joke
iJobs Money & Business
£280 - £320 per day: Ashdown Group: The Ashdown Group have been engaged by a l...
£400 - £450 Per Day: Clearwater People Solutions Ltd: **URGENT CONTRACT ROLE**...
£35000 - £38000 per annum + Benefits: Ashdown Group: Training Coordinator / Pl...
Data Governance Manager (Solvency II) – Contract – Up to £450 daily rate, 6 month (may go Permanent)
£400 - £450 Per Day: Clearwater People Solutions Ltd: We are currently looking...