Fuller's £54m offer ‘substantially undervalued' Capital

17 June 2011 by
Fuller's £54m offer ‘substantially undervalued' Capital

Capital Pub Company rejected a £54m offer from Fuller's for the business because it "substantially undervalued the business and its prospects".

Fuller's revealed earlier this morning that it had made an offer of 175p per share for Capital in March, followed by an increased offer of 200p per share offer in April which valued the business at £53.9m. It said it was "disappointed" Capital had declined to negotiate.

But in a statement Capital said: "The Capital Board, with its advisers, considered both the indicative offers of 175p and then the rapidly increased offer of 200p per share and unanimously decided that even the higher indicative offer substantially undervalued the business and its prospects. Therefore it was considered to be without merit, rejected and deemed inappropriate to engage further with Fuller's on these proposals."

Capital has 34 pubs in London, and claimed to have delivered sales growth of 24% in the current year. It has plans to grow to 45-50 sites in the next two years.

Its final results for the year ending 26 March 2011 are due out on Tuesday next week.

Capital Pub Company buys 33rd pub for £1.55m >>

Capital Pub Company sells pub for £3.5m to reduce debt >>

Capital Pub Company sees 24% rise in revenues >>

By Neil Gerrard

E-mail your comments to Neil Gerrard here.

If you have something to say on this story or anything else join the debate at Table Talk - Caterer's new networking forum. Go to www.caterersearch.com/tabletalk

Caterersearch.com jobs

Looking for a new job? Find your next job here with Caterersearch.com jobs

[Newsletters For the latest hospitality news, sign up for our e-mail newsletters.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking