Punch Taverns (LSE: PUB) has agreed to sell eight managed pubs to Greene King PLC (LSE: GNK) for £15.9 million in cash. The pubs are freehold outlets located around Great Britain including one in central London and one in Scotland.
The agreement is unconditional and is expected to complete on 16 February 2010. The proceeds of the sale will be used to reduce debt and reinvest in the Punch Taverns estate. This latest transaction follows an earlier disposal of 11 managed pubs to Greene King, which completed in July 2009. During the financial year ended 22 August 2009, the pubs concerned generated earnings of approximately £1.0 million before interest and tax. The book value of the assets was £12.8 million as at 22 August 2009.
In December, Punch said it continued to be materially impacted by the difficult economic conditions but its non-core pub disposal programme was progressing well. The board raised its full year disposal estimate to £300 million. http://www.proactiveinvestors.co.uk/companies/news/12663/punch-taverns-to-sell-greene-king-another-8-pubs-for-159-mln-12663.html
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