The deal, which still has to be approved by Greene King’s shareholders, would see CK Asset Holdings paying £2.7bn in cash for the brewer and pub company as well as assuming approximately £1.9bn of debt.
Gerald Ma of CK Asset Holdings said: “We have come to know Greene King well as we have been an owner of a portfolio of pubs which have been leased to them since late 2016. We share the strategy which Greene King has set out in its recent results announcement, that is to focus efforts on developing the brand, enhancing the service offering, training and retaining talent, executing an active estate management strategy, and all under a prudent financial management policy. I look forward to working closely with the management team as we embark on the next stage in the company’s growth.”
Greene King currently operates more than 2700 pubs, restaurants and hotels across Scotland, England and Wales as well as the Greene King brewery in Bury, St Edmunds, and the Belhaven brewery in Dunbar.
Nick Mackenzie, chief executive of Greene King, said: “Greene King has a well-invested estate in prime locations, leading brands, a rich history and a talented team of 38,000 people serving millions of customers across the country every week.
“CKA is an experienced UK investor and shares 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.”