(Yicai Global) Aug. 20 -- Shares of Greene King surged 51 percent yesterday after Chinese property developer CK Asset Holdings said it plans to acquire Britain's largest pub retailer and brewer in a deal worth GBP4.6 billion (USD5.6 billion).
Greene King's stock price [LON:GNK] climbed 51 percent to close at GBP8.50 (USD10.30) yesterday. CK Asset [HKG:1113] gained 0.9 percent to close at HKD55.50 (USD7.08) today.
CK Asset, founded by Hong Kong tycoon Li Ka-shing, has offered to buy Greene King for GBP2.7 billion and assume its GBP1.9 billion debt, the Hong Kong-based firm said in a statement yesterday. Li Ka-shing retired last year but his family still owns nearly a third of the property giant.
Before this deal, CK Asset has invested in a small number of English pubs, all of which are leased to Greene King, which was founded in 1799. Greene King will continue to be an important part of British culture and its out-of-home dining market, the buyer added.
CK Asset will have its work cut out tempting more consumers into the beer giant's more than 2,700 pubs, restaurants and hotels in a post-Brexit Britain. Greene King's revenue fell nearly 2 percent to GBP2.2 billion last year.
Editor: Emmi Laine