Embattled pub chain Honeycombe Leisure has secured its future through a reverse takeover by Liverpool brewer Robert Cain & Co.
The pub chain revealed last night it would change its name to Cains Beer Company as part of the rescue deal, which is subject to shareholder approval at an extraordinary general meeting on 7 June.
If successful the new entity will be headed by Cains owners Sudarghara Dusanj and Ajmail Dusanj as chief executive and chief operating officer respectively.
It will have a pub estate of some 109 sites, situated almost exclusively in the North West of England.
It will also have a fighting fund of £5.1m through a £2.6m share placing and the creation of a loan facility, which will be used to expand its portfolio.
The move is classed as a reverse takeover under the rules of the Alternative Investment Market (AIM), where Honeycombe is listed, because Cains is the smaller of the two.
If given the nod by shareholders the enlarged group will have a market capitalisation of around £7.6m based on the placing price and its shares will be readmitted for trading on AIM on the 8 June.
Chairman Sandy Anderson has resigned from the Honeycombe board with immediate effect.
By Nic Paton
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