Brew on Quay. Photo: Supplied / Brew on Quay / Instagram
Listed pub and restaurant owner Good Spirits Hospitality (GSH) has found a buyer for its pubs, which will see it exit the stock exchange.
The company's nine bars in Auckland and Hamilton have been on the block since the start of the year, after the company was being pressured by main lender and shareholder Pacific Dawn - a subsidiary of Japanese finance giant Nomura - to strengthen its finances.
The buyer was the hospitality group Brew on Quay (BOQ), which currently owns three Auckland venues, for $20.7 million.
BOQ is jointly owned by current GSH chief executive Geoff Tuttle, Richard Sigley - who sold the 11 establishments to GSH's predecessor company, Veritas, in 2014, current GSH director Matt Adams and Jamie Dutton.
The chair of GSH's Independent Transaction Committee, John Seton, said the sale would ensure a stable future for the GSH venues.
"The BOQ team have a long, successful history of growing and operating some of New Zealand's best performing establishments.
"The process we ran was independent, robust and conducted with the cooperation of lender, Pacific Dawn. The price achieved is at the upper end of our expectations. We are satisfied that it is the best outcome for all our stakeholders."
The sale needs approval from major breweries DB and Lion, as well from shareholders, which if given, will lead to GSH delisting from the NZX.
BOQ director Richard Sigley said it was an exciting time for the company and led to growth.
"We believe that the transaction will provide customers, suppliers and employees with familiar faces and fresh ideas."
GSH was badly hit by Covid closures, which resulted in substantial losses of $5.8m in 2021 and $6.6m last year, and a sharp rise in its debt.