Greene King to buy seven pubs from M&B for £12.7m
Greene King is to buy seven pubs in Scotland from Mitchells & Butlers (M&B) for £12.7m.
The company said that the move would be funded by a rights issue and is expected to complete on 8 December 2009.
The pubs will be managed under the Suffolk-based brewer's Belhaven brewery arm as it attempts to continue its expansion into the Scottish market.
The news came as the company announced a 4.3% rise in revenue to £464.5m for the half-year to 18 October 2009. Pre-tax profit was also up by 2.8% to £62.4m compared to the same period in 2008/09.
The company highlighted a strong performance at Belhaven, which reported profit growth of 8.9%, and it also noted "improving performance trends" at its Pub Partners arm.
Rooney Anand, Greene King chief executive, said: "I am very pleased with our performance in the first half of our financial year. Whilst the environment remains demanding, each one of our businesses has made substantial progress in their respective markets and profit growth has been achieved in Retail, Belhaven and Brewing Company.
"We were a strong business going into the recession and as a result of the actions we have taken, we are well placed to continue to outperform the sector. Although the economic outlook remains uncertain, I am confident we can build on this strong first half performance and continue to deliver value to our shareholders."
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By Neil Gerrard
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