Mitchells & Butlers to raise £350m from shareholders

By Georgia Cronin

- Last updated on GMT

Photo credit: Wiki Commons (TR Wolf)
Photo credit: Wiki Commons (TR Wolf)

Related tags: Mitchells & butlers, Share, Coronavirus

Harvester and All Bar One operator Mitchells & Butlers has made strides to ease its significant lockdown cash burn through an equity raise and unsecured revolving credit facility.

Last month, the group announced plans to explore an equity capital raise, which it has now revealed will aim to raise £350m by means of a fully pre-emptive open offer.

It has also reached an agreement with its banks for a new £150m, three-year credit facility, subject to the completion of the open offer, and arranged a number of amendments and waivers which may be withdrawn should the offer fail to complete.

The proposal has been supported by M&B’s major shareholders, Piedmont, Elpida and Smoothfield, that have consolidated their holdings under a newly incorporated holding company – Odyzean Limited - to make available the full amount of £350 million to be raised.

Under the terms of the offer, the company will issue approximately 167 million new ordinary shares at a subscription price of 210 pence per share, representing a 36% discount to its closing share price on 12 February 2021.

“We are pleased to have received the support of our major shareholders and key creditors,” said Bob Ivell, M&B chairman.

“Mitchells & Butlers was a high performing business going into the pandemic and this capital raising and refinancing will provide the business with the certainty of funding that it needs in order to emerge in a stronger position to take advantage of its strong property portfolio, well known brands and operational expertise in order to win market share and continue its long-term strategy of deleveraging and driving value creation for shareholders.”

Related topics: Business & Legislation

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