Punch Taverns plc today announces an offering of 70 million new shares, priced at 230p per share. After a very short marketing programme on revised terms, the offering was covered approximately 3 times at the offer price.
The Global Co-ordinator, Merrill Lynch International, will be granted an over-allotment option for up to an additional 6 million ordinary shares at the offering price.
Final Listing Particulars are expected to be published and conditional dealings are expected to commence on the London Stock Exchange at 8:00 am on 22 May, 2002. Admission to the Official List of the UK Listing Authority and the start of unconditional dealings are expected to take place on 27 May, 2002.
Punch Taverns' market capitalisation at the offering price is £570 million, and its enterprise value, including net debt of £1.4 billion, is £2.0 billion.
The offering will raise £160 million in gross proceeds. In the event that the over-allotment option is exercised in full, gross proceeds of £174m will be raised. Net proceeds will be used to repay external debt (£15m), pay amounts in respect of shareholder loans, dividends and fees (£69m) and provide cash for acquisitions and general working capital purposes (£56m).
No existing shareholders are selling any of their ordinary shares.
Giles Thorley, Executive Chairman, said,
"After a well-received investor road show, it was clear that there was significant investor interest from blue chip institutions. We felt it was right to proceed with a flotation that would create sufficient liquidity in the after market whilst minimising dilution to existing shareholders.
"We are delighted with the reaction to the restructured offer and look forward to delivering value for both our existing and new shareholders."
A Merrill Lynch spokesman said:
"Investor recognition of the qualities and potential of Punch has been consistently positive throughout the share offer marketing. This is demonstrated by the speed, scale and quality of response to today's offering, which we believe provides a solid foundation for Punch's future as a quoted public company."
These written materials are not for distribution in the United States, Canada or Japan. The information contained herein does not constitute an offer of securities for sale in the United States, Canada or Japan. Punch Taverns has not and does not intend to register any of its securities under US securities law. Accordingly, the securities may not be offered or sold in the United States unless they are registered or exempt from registration under applicable law or in transactions that are exempt from registration.
This announcement has been issued by Punch Taverns plc and is the sole responsibility of Punch Taverns plc and has been approved solely for the purposes of Section 21 of the Financial Services and Markets Act 2000 by Merrill Lynch International of Merrill Lynch Financial Centre, 2 King Edward Street, London EC1A 1HQ. Merrill Lynch International is acting for Punch Taverns plc and no one else in connection with this matter and will not be responsible to any other person for providing the protections afforded to clients of Merrill Lynch International or for providing advice in relation to this matter.
This announcement does not constitute or form part of an offer, or any solicitation of an offer, for securities and any purchase of or application for shares in the offering should only be made on the basis of information contained in the formal prospectus to be issued in connection with the offering. The price and value of, and income from, shares may go down as well as up. Persons needing advice should consult a professional adviser.
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