Young’s is a leading managed operator of premium pubs and bedrooms across London and the south of England, with a rich 192-year history. It runs a predominantly freehold estate, in prime locations, and its pubs sit at the heart of their local communities. This transaction allows Young’s to increase its managed trading estate by 50 pubs to 279 pubs and will add 240 bedrooms to its estate, taking the total to 1,065 bedrooms.
Under the terms of the offer, City Pubs shareholders will be entitled to receive 108.75 pence in cash and 0.032658 new Young’s A shares for each City Pub share. Based on the pre-announcement closing price of a Young’s A share, the transaction values City Pubs’ issued and to be issued share capital at approximately £162m. Following completion, City Pubs shareholders will represent approximately 6 per cent. of Young’s in terms of economic entitlement and 10 per cent. of Young’s in terms of voting rights.
The acquisition is to be effected by court-sanctioned scheme of arrangement and is conditional on City Pub shareholder approval and regulatory clearance. It is expected to close in the first quarter of 2024.