CK Asset Holdings to buy Greene King for 850p a share

Shares of Greene King surged on Monday as the pub group agreed to be bought by a subsidiary of CK Asset Holdings, the flagship of the CK Hutchison Group, for 850p a share in cash.

The offer, which implies an enterprise value of £4.6bn for Greene King, is a premium of about 51% to the closing share price on Friday. Greene King said its directors consider the terms to be "fair and reasonable".

The company's chairman, Philip Yea, said: "The Greene King board is confident in the long term prospects of the business but believes this offer represents a good opportunity for shareholders to realise value for their investment at an attractive premium, while also ensuring the future success of Greene King for employees, partners, customers and suppliers.

"We are therefore unanimously recommending it to our shareholders."

Meanwhile, chief executive Nick Mackenzie said: "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."

At 1600 BST, the shares were up 52% at 854p.