More Changes For Chiswick Pub Scene As Greene King Is Sold

Hong Kong firm CKA buys business which owns a number of local pubs

Pub giant and brewer Greene King, which owns a number of pubs in Chiswick, has been bought by Hong Kong operator CKA.

Suffolk-based Greene King owns The City Barge, The Tabard, the Duke of Sussex, the Packhorse & Talbot and Bollo House. Overall its estate includes roughly 2,700 pubs, restaurants and hotels in total across the UK. The deal is worth £2.9 billion.

The move comes just months after local brewery Fuller's, sold its drinks business to Japan's biggest brewer Asahi.

Neil Wilson, analyst at Markets.com, told BBC News while the deal was good news for shareholders, it was likely to be bad news for Greene King's customers. "I think we can comfortably expect more pub closures. It's a whopping price that implies CKA sees significant value in the property portfolio," he said.

CKA said it is a long-term and strategic investor in stable, profitable and cash flow generating businesses that benefit from real estate backing. "CKA believes that the United Kingdom pub and brewing sector shares these characteristics and that pubs will continue to be an important part of British culture and the eating and drinking out market."

Greene King chief executive Nick Mackenzie said CKA shared "many of Greene King's business philosophies".

"They understand the strengths of our business and we welcome their commitment to working with the existing management team, evolving the strategy and investing in the business to ensure its continued long-term growth," he added.

Greene King's directors said the terms of the deal were "fair and reasonable" and that they would unanimously recommend it to shareholders who will get the final vote on the tie-up.

Shares in Greene King surged more than 50% after the deal was announced.

CKA was founded by Hong Kong's richest man Li Ka-Shing, ranked 28th in the Forbes' Rich List, whose business empire spans retail, telecoms and power firms.

August 19, 2019