Pub firm Punch Taverns has agreed a takeover bid from Heineken that values the business at £403m.
Heineken, supported by investment firm Patron Capital, is to buy the Punch business through a vehicle called Vine Acquisitions and has agreed to pay 180p per share, which values Punch at £403m.
Heineken will pay £305m to Vine to add 1,900 of Punch's estate of 3,500 sites to its existing Star Pubs & Bars portfolio, which numbers 1,100.
Vine, controlled by Patron, will retain the remainder.
David Forde, managing director of Heineken UK, added: "Today's announcement is a huge vote of confidence in the great British pub. Our proven track record of success demonstrates that well invested and well run pubs in the leased and tenanted sector can thrive. Today's development is good news for pub-goers across the UK who will see the benefit of better pubs in their communities.
"We look forward to welcoming new licensees into Star Pubs & Bars, and to working with them to grow their businesses."
Stephen Billingham, chairman of Punch, said: "The Punch board and management team have positioned Punch to drive long term value for shareholders and our recent performance has demonstrated the successful execution of this strategy, reflecting the hard work and quality of the whole Punch team. While the board did not solicit this offer for the company, we believe this is a good outcome for shareholders as the offer provides cash certainty at a significant premium."