| |
| Please Note - Streaming News is only available to subscribers to the Active Level and above |
|
|
|
Mitchells & Butlers launches £350m discounted equity raising
StockMarketWire.com
|
Pub group Mitchells & Butlers said it would raise up to £350 million from a discounted share issue, as it attempts to weather the pandemic.
New shares in the company would be offered at 210p each, a 36% discount to the company's closing price on Friday.
Mitchells & Butlers had also agreed to a three-year, £150 million revolving credit facility with its relationship banks, conditional on the equity issue being completed.
The company had also agreed to debt-covenant waivers following breaches blamed on ongoing impact of the Covid-19 pandemic and associated restrictions.
Mitchells & Butlers said the equity raising was fully supported by major shareholders Piedmont, Elpida and Smoothfield, which collectively own about 55% of the company.
The shareholders had informed Mitchells & Butlers that they had joined together and consolidated their holdings under a newly incorporated holding company Odyzean.
'Odyzean has indicated its intention to make available the full amount of £350 million to be raised, to ensure that the proposed open offer will be fully subscribed in all circumstances,' Mitchells & Butlers said.
'Further to this, Odyzean has communicated to the company that it is fully supportive of Mitchells & Butlers' management team, which has re-established the business as a sector leader with a strong focus and direction.'
Odyzean, however, had indicated that it intended to review the composition of the company's board, which may result in a reduced level of independent non-executive representation. 'We are pleased to have received the support of our major shareholders and key creditors,' chairman Bob Ivell said.
'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 ...'
Story provided by StockMarketWire.com
|
|
|
|
|
|
