Major shareholders in Mitchells & Butlers have consolidated their stakes into a new holding company as the pubco looks to raise £350m.
The money will be raised by means of an underwritten fully pre- emptive open offer (the ‘Proposed Open Offer’). This will include a facility for shareholders to apply for any shares not taken up by other shareholders, up to a maximum amount, depending on their existing shareholdings in Mitchells & Butlers.
The shareholders’ new company, Odyzean Ltd, now controls the majority of votes in the company. It has indicated its intention to make available the full amount of £350m to be raised, to ensure that the Proposed Open Offer will be fully subscribed in all circumstances.
Mitchells & Butlers has also reached agreement with its relationship banks for a new £150 million three-year unsecured revolving credit facility.
M&B chairman, Bob Ivell, said: “We are pleased to have received the support of our major shareholders and key creditors. 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.”
