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City Pub Group PLC said on Tuesday it is selling six of its 46 pubs in two separate transactions worth about £17.1 million.
The pub operator sold five of the six pubs to Somerset-based Portobello Starboard Ltd for £16.2 million. It said the transaction will be completed around April 11.
These five pubs had a net book value of approximately £17.1 million as at April and recorded earnings before interest, tax, depreciation and amortisation of £700,000 for the year ended December 26, City Pub Group explained.
The company also sold the London Road Brewhouse, based in Southampton, for £900,000. This sale completed on March 18.
‘The proceeds from the disposal pubs will be used to invest and expand the group in other geographies across the UK,’ the London-based company said.
Chair Clive Watson added: ‘We have achieved a good price for these assets. The capital realised makes us debt free and in an excellent position to take advantage of the current market dislocation to further premiumize our estate and deliver long term growth through selected acquisition.’
City Pub Group's shares closed 2.6% higher at 91.35 pence each in London on Tuesday.
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