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(Reuters) – Slug and Lettuce's owner, Stonegate Pub Company, announced Thursday that it has agreed to pay 1.27 billion pounds ($ 1.58 billion) for the purchase of the operator. pub Ei Group (EIGE.L), taking control of more than 4,000 cafés and mbadively expanding its existing network.
As part of the deal, Stonegate will offer 285 pence in cash for each Ei share, which represents a premium of more than 38% over Wednesday's close.
Stonegate, which owns a national estate of over 765 points of sale, began operations in November 2010 after the purchase of 333 Mitchells & Butlers (MAB.L). Since then, its size and scale have increased thanks to a series of acquisitions.
UK restaurant operators and restaurant chains are struggling with additional costs due to a rise in the minimum wage, rising real estate prices and electricity bills, as well as dropping the consumption of alcohol in bars by young Britons.
The deal covers Ei, formerly Enterprise Inns, at £ 2.97 billion, including debt.
The directors of Ei intend to unanimously recommend the offer to shareholders. They have been advised by Deutsche Bank and Rothschild & Co, while Barclays acts as financial advisor for Stonegate.
Report by Tanishaa Nadkar in Bengaluru; Edited by Arun Koyyur
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