Nov 4 (Reuters) - Brewer and pub owner Greene King Plc said it had reached an agreement on a recommended offerfor Britain's Spirit Pub Company Plc, valuing SpiritPub at about 773.6 million pounds ($1.24 billion).
The deadline for the takeover offer was extended last weekto hold further talks.
Greene King is shifting its focus to its own-managed retailbusiness, comprising restaurants, hotels and pubs, as itcompetes for a bigger slice of the dining market and to that endis reducing its tenanted and leased estate.
Spirit Pub, which was spun out of Punch Taverns Plc in 2011 and runs chains such as Chef & Brewer, Fayre & Squareand Flaming Grill, is split into more than 750 managed pubs and450 leased pubs. Managed pubs account for nearly 90 percent ofthe group's revenue.
Greene King and Spirit Pub will also benefit from a largerexposure to the economically stronger London and southwestregions of Britain, while the combined group could expect toachieve costs synergies of at least 30 million pounds per annum,Greene King said on Tuesday.
Spirit Pub rejected a takeover approach from cider maker C&CGroup but gave the Irish firm a month to submit a formaloffer to challenge the Greene King bid. ($1 = 0.6252 British pound) (Reporting by Aastha Agnihotri and Neil Maidment; Editing byGopakumar Warrier)