Canaccord Genuity hikes target on Punch Taverns

(ShareCast News) - Analysts at Canaccord Genuity hiked their target price for shares of Punch Taverns following the company's acceptance of the 180p per share cash offer from Vine Acquisitions, the acquisition vehicle for Patron Capital and Heineken.The bid, which had been accepted by the company's top three shareholders and its directors, mustered the support of 52.3% of the share capital, but required the backing of 75.0% via a scheme of arrangement.A Court Meeting was to be held at a date to be agreed in the first quarter of 2017 and Vine had reserved the right to increase the amount of its bid should Emerald, the vehicle for Alan McInstosh, table a higher offer of 200p or more.Nigel Parson at Canaccord dubbed the ability of Punch's Board to pit the two suitors for the company against each other as "brilliant".Emerald had been required by the Take-over panel to make a bid no later than seven days before the Court Meeting.The bid price equated to a 100% premium over the price of the stock prior to the first approach on 7 July and valued its equity at £403m which in turn equated to an enterprise value of £1.8bn and an exit multiple of roughly ten times EV/EBITDA for the year ending Augist 2016.Parson upped his target from 110p to 180p and kept his recommendation at 'hold'.