Heineken in battle for Punch pubs with founder

Punch Taverns today revealed it is at the centre of a £400 million takeover battle between Heineken and its Irish co-founder.

The 3300-strong pubs chain said it had received two potential offers, one of them from brewing giant Heineken that values the business at nearly £400 million.

Property investor Patron Capital Advisers has proposed a 174p-a-share offer, with Dutch brewer Heineken — behind the Strongbow and Foster’s brands — acquiring a stake on completion.

But Punch has also received a 185p-a-share approach from Emerald Investment Partners, founded by property and healthcare investor Alan McIntosh.

McIntosh is co-founder of Punch, Spirit and the Wellington Pub Company. He also founded private-equity firm Sun Capital.

Heineken’s offer values Punch’s equity at about £386 million, and Emerald’s bid values it at £410 million. Punch said discussions with Patron and Heineken are at an advanced stage. “There can be no certainty that any firm offer will be made by either Patron or Emerald,” it added.

Punch shares surged 43.25p, or 34%, to 171.75p. McIntosh is understood to be working with advisers at the Bank of America Merrill Lynch. Punch is advised by Goldman Sachs.