Stock Spirits accepts £767m takeover approach from CVC

London-listed Stock Spirits has accepted a £767 million takeover bid for the company by private equity houses CVC Advisers.

The deal is the latest in a long line of acquisitions by PE money in recent months and bosses at the firm said they would be recommending the plans to shareholders.

Under the proposals, shareholders will get 377p a share – a 41% premium on the closing price on Wednesday evening of 268p.

Stock Spirits is listed in London but primarily trades in central and eastern Europe, where it sells its 1906 and Stock Prestige products.

It has production lines in Poland, the Czech Republic, Germany and Italy – countries that account for 80% of sales.

The deal is expected to be completed between December and January, assuming investors vote in favour.

Shares quickly spiked 42.7% to 382.5p – above the offer price, suggesting some investors hope a rival bid could emerge for the firm.

The directors at CVC, who are making the bid through Sunray Investments Luxembourg, said Stock Spirits has “significant future growth potential”.

Istvan Szoke, managing partner at CVC, said: “Stock Spirits is a high quality business with strong brands, established market positions and significant growth potential, and we are delighted that our proposal has been recommended by the Stock Spirits directors.”

David Maloney, chairman of Stock Spirits, added: “The directors of Stock Spirits are confident in the long-term prospects of the Stock Spirits group and believe that the offer reflects our strong position and represents compelling value for Stock Spirits shareholders.”