Hong Kong-based property development company CK Asset Holdings has signed an agreement to acquire UK-based pub retailer and brewer Greene King in a deal valued at £2.7bn ($3.2bn).

Established by Li Ka-shing, CK Asset Holdings has agreed to buy the pub retailer by paying £8.50 per share.

Greene King chief executive Nick Mackenzie said: “Greene King has a well-invested estate in prime locations, leading brands, a rich history and a talented team of c.38,000 people serving millions of customers across the country every week.

“CKA is an experienced UK investor and shares many of Greene King’s business philosophies. They understand the strengths of our business and we welcome their commitment to working with the existing management team, evolving the strategy and investing in the business to ensure its continued long-term growth.”

Currently, Greene King operates nearly 2,730 pubs, restaurants and hotels across the UK region. The company also owns several beer brands, including Abbot Ale and Old Speckled Hen.

The shares of the brewer were reported to have increased by 50% after the announcement of the acquisition.

In January, Greene King announced record Christmas day sales of £7.7m and a 10.9% increase in like-for-like sales over the two weeks ending 6 January.

The UK-based pub operator also saw a 3.2% rise in like-for-like sales in the first 36 weeks of its financial year.

Greene King’s pub partners saw a 1% dip in net profit for this period. Total beer volumes in its brewing and brands sector rose by 1.8%, while the company’s own-brewed volumes dropped by 2.3%.