British diversified investment holding Guinness Peat Group Plc (LON:GPG) said on Thursday it had exited domestic pub operator Young & Co’s Brewery Plc (LON:YNGA) after selling its entire holding in it for around GBP54m (USD84m/EUR67m).
Guinness Peat said it had sold, through its fully-owned unit GPG (UK) Holdings plc, 4.47m series A ordinary Young & Co’s shares at GBP5.50 apiece and 6.54m non-voting ordinary shares at GBP4.50 per unit through an accelerated bookbuild run by Barclays Bank Plc and JPMorgan Securities Ltd.
The vendor announced the plan to sell its entire Young & Co’s stake earlier today, saying the move was in line with the strategy announced in February 2011 to orderly realise its investment portfolio.
Commenting on the completion of the sale, GPG’s chairman, Rob Campbell, said the stock was sold at a discount and below their book value of GBP64m as at 31 December 2011, but the realised price was still a reasonable value return to shareholders given the previously illiquid nature of the shares.
GPG will use the cash to help pursue its announced capital management initiatives, Campbell added.
The company expects to complete the placing on 19 June pending customary conditions, with the payment to be settled in cash.
Young & Co’s had 219 pubs as of 29 March 2010.