The owners of Punch Pubs are exploring a potential takeover of smaller rival Amber Taverns, a deal that would create a leisure group operating from nearly 1500 sites.
Sky News understands that Punch Pubs, which is owned by US-based Fortress Investment Group, is among a number of parties which has requested information on Amber from advisers handling a sale.
City sources said that other major UK pub operators including Heineken and Admiral Taverns, which is owned by Proprium Capital Partners, are also expected to examine bids for Blackpool-based Amber, although it was unclear on Thursday whether they would proceed to lodging formal offers.
The auction, which is being run by Sapient Corporate Finance, could command a price tag of about £200m, although intensifying fears of a recession and sharp consumer spending slowdown may dampen value expectations.
Inflationary pressures are having a severe impact on the hospitality sector although so-called ‘wet-led- pubs, which rely on the sale of drinks rather than food.
Amber is owned by MxP, an investment vehicle set up by Michael George, the former controlling shareholder in Weetabix.
The pubs group, which is concentrated in northern England, Wales and the Midlands, is also backed by Ares Capital Management.
It trades from about 160 pubs, which added to Punch’s 1300 venues would cement the latter’s status as one of the UK’s biggest pub operators.
Punch changed hands late last year, when Fortress bought it from Patron Capital Partners, a specialist real estate investor, for about £1bn.
