C&C Group Share News (CCR)

LONDON (Alliance News) - Alcohol distributor Conviviality PLC on Wednesday confirmed that it is in talks with C&C Group PLC over sale of unit Matthew Clark Bibendum.

The company also said that it was in talks with other parties for the sale of its retail business.

C&C earlier in the day said that, with the support of AB InBev NV, it is in advanced discussions to acquire the UK drinks distributors Matthew Clark (Holdings) Ltd and Bibendum PLB (Topco) Ltd and their subsidiary businesses.

The proposed acquisition is conditional on the appointment of administrators to Conviviality PLC, which is expected to take place on Wednesday.

Consideration for the shares will be a nominal sum, and C&C will provide sufficient funds to support the on-going working capital and other cash requirements of the businesses. In addition, AB InBev will provide additional financial support to the transaction. C&C’s investment will be funded from existing C&C facilities.

At completion, Matthew Clark Bibendum will have GBP102 million of working capital facilities provided by its current lender group, repayable in installments over the 12 months following completion.

Matthew Clark Bibendum will be run as a separate business.

Shares in C&C were 11% higher at EUR2.85 each on Wednesday. Conviviality shares are currently suspended.

By Antonia Di Lorenzo and Dayo Laniyan; antoniadilorenzo@alliancenews.com; dayolaniyan@alliancenews.com