Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Young's to buy City Pub Group in £162m deal

Published 16/11/2023, 11:02
Updated 16/11/2023, 11:10
Young's to buy City Pub Group in £162m deal

Sharecast - Under the terms of the deal, City Pub shareholders will receive 108.75p a share in cash and 0.032658 Young’s shares.

Young’s chief executive Simon Dodd said: "City Pubs is an excellent business we have followed for some time, and one which aligns closely with Young's in terms of both strategy and culture. Like us, City Pubs operates premium, individual and well-invested pubs and rooms, with a focus on the highest standards of customer service. Both businesses have performed well in a tough trading environment recently, testament to the strength of our business models, people and approach to customers.

"We believe that City Pubs (LON:CPC) is an excellent fit with Young's and the combination of the two businesses represents a compelling opportunity for all stakeholders. It will allow us to expand our estate through the addition of a complementary, high-quality pub and bedroom portfolio, with the potential for the benefit of significant operational synergies to be realised by both sets of shareholders, through the partial share offer."

News of the acquisition came alongside Young’s interim results, which revealed a record performance.

In the 26 weeks to 2 October, adjusted pre-tax profit rose 12% to £28m on revenue of £196.5m, up 5.4% on the same period a year earlier.

Young’s said the period was a "tale of two halves", as sunny weather in June gave way to unfavourable weather in the core summer months of July and August.

Most recently, the pub chain said it was boosted by the hot weather in September and the start of the Rugby World Cup.

3rd party Ad. Not an offer or recommendation by See disclosure here or remove ads .

Young’s lifted its dividend by 6% to 10.88p a share.


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.