Emerald Says it Won't Make an Offer for Punch

By Razak Musah Baba

LONDON--Emerald Investment Partners Ltd., said Wednesday it doesn't intend to make an offer for Punch Taverns PLC (PUB.LN).

Late last year pubs operator Punch said it has received two separate acquisition offers from private equity firms. Punch received a 174 pence a share proposal from Patron Capital Advisers LLP and a separate 185 pence per share offer from Emerald.

Patron and Emerald had until Jan. 11 to announce a firm offer for Punch under the U.K. takeover rules.

Punch later agreed to a 180 pence a share offer from Heineken N.V. (HEIA.AE) and Patron in a deal that valued the pub chain at 402.7 million pounds ($503.8 million). Patron said the offer, which has the support of shareholders owning 52.3% of Punch's issued share capital, is final and won't be increased.

"While the board didn't solicit this offer for the company, we believe this is a good outcome for shareholders as the offer provides cash certainty at a significant premium," Punch Chairman Stephen Billingham said in December.

Emerald confirmed Wednesday it doesn't intend to make an offer for Punch.

Responding to Emerald's announcement, Punch said Wednesday the recommended offer by Heineken and Patron is expected to complete in the first half of 2017.

Punch shares at 1350 GMT were down 12 pence, or 6.4%, at 176 pence, valuing the company at GBP390.6 million.

--Ian Walker contributed to this article.

-Write to Razak Musah Baba at [e-mail]; Twitter: @Raztweet

(END) Dow Jones Newswires

February 01, 2017 09:38 ET (14:38 GMT)

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