The Motley Fool

C&C Group Plc Confirms Bid Interest In Spirit Pub Co PLC

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

C&C c&cGroup (LSE: CCR) — the Dublin-based company behind numerous cider brands, including  Magners, Bulmers and Ye Olde English — issued a statement today in which it confirmed that it has made a preliminary approach to the Spirit Pub Company (LSE: SPRT), which operates pub & restaurant brands such as Chef & Brewer, Fayre & Square and Flaming Grill from its Burton-upon-Trent headquarters. At the time of writing C&C’s share price is down almost 11%, whilst Spirit’s is up close to 1%.

Whilst cautioning that there’s no certainty about whether a firm offer will be made, C&C says that it believes buying Spirit would enhance long-term shareholder value in a number of ways, including revenue and cost synergies, an improved route-to-market for C&C’s brands, and the ability that a bigger business would have to negotiate better terms for procurement.

5 Stocks For Trying To Build Wealth After 50

Markets around the world are reeling from the coronavirus pandemic… and with so many great companies trading at what look to be ‘discount-bin’ prices, now could be the time for savvy investors to snap up some potential bargains.

But whether you’re a newbie investor or a seasoned pro, deciding which stocks to add to your shopping list can be a daunting prospect during such unprecedented times.

Fortunately, The Motley Fool UK analyst team have short-listed five companies that they believe STILL boast significant long-term growth prospects despite the global upheaval…

We’re sharing the names in a special FREE investing report that you can download today. And if you’re 50 or over, we believe these stocks could be a great fit for any well-diversified portfolio.

Click here to claim your free copy now!

Cspirit&C’s statement follows one from Spirit yesterday, in which Spirit said it had received the preliminary approach, but that, after reviewing the proposal, the board had rejected it.  Under the City Code on Takeovers and Mergers, C&C now has until 5pm on 20 November to announce whether or not it has a definite intention to make a bid for Spirit.

C&C is not the first suitor for Spirit’s corporate hand. Towards the end of September Greene King (LSE: GNK) confirmed press rumours that it was considering a merger with Spirit, which drove the Burton-based company’s share price up 20% in day.

After rejecting the initial approach from Greene King,  Spirit said last Monday that it would be willing to recommend an offer based on a revised proposal it received from Greene King on 18 October, which valued Spirits shares at around 109.5p. Spirit also said that its board was in discussion with Greene King in relation to the other terms of the proposal. Greene King now has until October 30 to make its own firm offer for Spirit.

Spirit’s share price now stands at 107.1p — that’s up almost 50% from this time last year, and an index-trouncing gain of  155% over the past five years, during which time the FTSE All-Share index  rose just 27.2%.

In contrast, at €3.50, C&C’s share price has fallen 15.5% over the past 12 months, and has only managed a 27.5% rise over the last five years, barely better than the FTSE All-Share index.

Meanwhile, Greene King is down 7% on this time in 2013, at 784p per share,  but has comfortably bested the index over five years with a gain of 87%.   

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story.

In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Jon Wallis has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.