Mitchells & Butlers confirms Tchenguiz joint venture

27 September 2007
Mitchells & Butlers confirms Tchenguiz joint venture

Mitchells & Butlers today confirmed it was planning to press on with its proposed £4.5b property joint venture with investor Robert Tchenguiz despite already losing £140m on the deal.

The delay meant losses from hedging the deal more than doubled from £60m to £140m.

However, announcing a trading statement today, chief executive Tim Clarke said: "We continue to believe that significant value can be released to shareholders through creating a dedicated property company structure and we continue to have discussions to implement a transaction as and when the credit markets stabilise."

The statement, released ahead of full-year results in November, revealed that like-for-like sales were up 3.2% in the 50 weeks to 15 September, with demand for food particularly strong.

Since the English smoking ban was implemented in July, like-for-like sales in pubs that had not already banned lighting up were up 2.2%.

However, Clarke warned that future performance was likely to be impacted by a fall in consumer spending and rises in food and wage costs.

Mitchells & Butlers' debt grows as deal with Robert Tchenguiz is delayed >>

Robert Tchenguiz raises stake in Mitchells & Butlers >>

Mitchells & Butlers confirms property deal speculation >>

By Daniel Thomas

E-mail your comments to Daniel Thomas]( confirms Tchenguiz joint venture) here.

[The Caterer Blog]( Catch up with more news and gossip on the Caterer Blog here
[Newswire For the latest hospitality news, sign up for our e-mail news alerts.
The Caterer Breakfast Briefing Email

Start the working day with The Caterer’s free breakfast briefing email

Sign Up and manage your preferences below

Check mark icon
Thank you

You have successfully signed up for the Caterer Breakfast Briefing Email and will hear from us soon!

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.


Ad Blocker detected

We have noticed you are using an adblocker and – although we support freedom of choice – we would like to ask you to enable ads on our site. They are an important revenue source which supports free access of our website's content, especially during the COVID-19 crisis.

trade tracker pixel tracking