All Bar One operator looks to raise £350m

15 February 2021 by
All Bar One operator looks to raise £350m

All Bar One operator Mitchells & Butlers has announced it intends to raise £350m through an open offer, including allowing shareholders to apply for any shares not taken up by other shareholders.

The move was supported by the company's major shareholders, Piedmont, Elpida and Smoothfield, who collectively hold approximately 55% of the company. The trio have joined forces and consolidated their holdings under a new company, Odyzean, and indicated their intention to make available the full £350m. Odyzean also said that it was fully supportive of Mitchells & Butlers' management team, although it intends to review the board of directors, which may see fewer independent non-executives in the future.

Under the terms of the open offer, the company will issue approximately 167 million new ordinary shares at a price of 210p per share, a 36% discount to the company's closing share price on 12 February 2021. It is anticipated that the open offer will be fully underwritten at launch.

Mitchells & Butlers operates restaurant and pub brands including Harvester, Toby Carvery, All Bar One, Miller & Carter, O'Neill's and Ember Inns.

Bob Ivell, chairman of Mitchells & Butlers, 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."

Photo: Shutterstock

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