Honeycombe Leisure in talks with Liverpool brewer
North-West pub chain Honeycombe Leisure has confirmed it is in advance talks with privately-owned Liverpool brewer Robert Cain & Co.
The announcement came in response to media speculation around such a tie-up, including a report in today's Times newspaper that claims the move will be signed off this week.
On completion the deal will see Robert Cain & Co integrated into Honeycombe via a reverse takeover, creating an integrated brewer and pub operator.
AIM-listed Honeycombe suspended trading in its shares on Friday after admitting it was in talks with a suitor.
The proposed deal would value the company at £37m and would be the first stock-market listing of a regional brewer since 1996.
A mixture of loans and an additional share placing would give the combined company an additional £5m for investment.
Robert Cains & Co already sells its beer through its own estate of nine pubs and the deal would allow their beverages to be sold through Honeycombe's network of 95 pubs and hotels.
The brewer is owned by Sudarghara and Ajmail Dusanj. The brothers will join the board as chief executive and chief operating officer respectively taking a 58% stake in the combined company.
Read full story in the Times here >>
Honeycombe Leisure shares suspended ahead of takeover announcement >>
Still no buyers for struggling Honeycombe Leisure pub group >>
By Christopher Walton
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