By Andrew Starke
Listed pub operator National Leisure and Gaming (NLG) has rejected the advances of a mystery suitor who is believed to have made a bid for a majority stake in the group.
The Australian Financial Review (AFR) today (Aug 19) speculated that the offer had come from a small Victorian hospitality operator but did not name the company.
NLG told the Australian Stock Exchange (ASX) that “it had been approached by external parties interested in taking an ownership interest in NLG and noted that there had been a recent approach by one of those parties”.
The pub operator, which runs a portfolio of 36 pubs, last month completed the sale of two Queensland leasehold pubs as part of a plan to settle debt with creditors.
NLG said the latest deal was put to it in the form of a structured capital raising but its board had a number of concerns with the proposal.
“The board has determined that at present, on the basis of the information provided to the board, the proposal is not in the best interest of NLG’s shareholders,” said a statement.
NLG CEO, Andrew Jolliffe, did not return TheShout’s calls but told the AFR that he was not able to comment further due to a confidentiality agreement.
NLG shares were at 2.1c at midday today (Aug 19), down from the 2.7c they were trading at seven days ago.