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Fortress to buy UK’s Punch Pubs from Patron Capital

By Jenni Reid

12:10, 15 December 2021

Exterior of the Red Lion pub in UK
Punch Pubs operates 1,300 pubs – Photo: Alamy

Fortress Investment announced it will buy British pub and bar operator Punch Pubs from Patron Capital Partners. 

The deal is for 100% of the share capital of Punch Pubs owner Vine Acquisitions. A deal figure was not disclosed, but last week Sky News reported it was about £1bn.

Softbank-owned Fortress said the purchase would be funded entirely through equity from its funds. 

‘Resilient’ model

Punch Pubs operates 1,300 pubs and is headquartered in Staffordshire, England. 

It delisted from the London Stock Exchange in August 2017.

Fortress noted the group’s “resilient business model and a suburban and rural estate has enabled it to weather the ongoing challenges of the pandemic”.


2,072.25 Price
+1.760% 1D Chg, %
Long position overnight fee -0.0193%
Short position overnight fee 0.0111%
Overnight fee time 22:00 (UTC)
Spread 0.30


0.62 Price
+0.200% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 22:00 (UTC)
Spread 0.01168


16,001.20 Price
+0.470% 1D Chg, %
Long position overnight fee -0.0262%
Short position overnight fee 0.0040%
Overnight fee time 22:00 (UTC)
Spread 7.0


38,808.40 Price
-0.100% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

Punch acquired 56 pubs from UK pub chain Young’s for £53m in July.

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‘Competitive market’

“Fortress is a hugely experienced investor who understands the strengths of our business and fully buys into our strategic positioning and business plan,” Punch CEO Clive Chesser said in a press release. “We welcome their ambition and commitment to work alongside the existing management team to invest in the business with innovation and capital to ensure our long-term success in what is a highly competitive market”.

Fortress managing director Cyril Courbage also commented on the deal:  “We are excited to team with Clive and the Punch management, which has done an exceptional job of navigating the challenges of the Covid crisis while positioning the business for long-term growth and value creation. The UK is an extremely attractive investment environment, and we will continue to explore other opportunities in this sector and across the UK, Ireland and Europe”.

Fortress was recently defeated in a takeover battle for British supermarket chain Morrisons by US private equity group Clayton, Dubilier and Rice.

UK hospitality sales saw a strong rebound following the lifting of lockdown restrictions in July. Challenges remain, however, particularly with the threat of the Omicron Covid-19 variant

Read more: Pints turn sour as UK's JD Weatherspoons report a loss

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SoftBank Group Corp.
5936.5 USD
-94.7 -1.580%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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