A subsidiary of Mitchells & Butlers has agreed to extend joint venture arrangements with James Horler, chief executive of 3Sixty Restaurants, and other 3Sixty shareholders with regards to Ego Restaurants.
Ego Restaurants operates 23 Mediterranean-style family restaurants across the UK and in August 2018, the subsidiary acquired a 40% stake in the business from an exiting shareholder for around £4m. At the same time, the subsidiary entered into a joint venture agreement with the other 3Sixty shareholders.
The subsidiary had the option to acquire the remaining 60% in 3Sixty in August 2021, however following recent discussions, it was agreed that it was in the interests of all parties for the joint venture to continue and shareholders agreed to an extension of the arrangements until 1 April 2023.
The maximum amount payable by the subsidiary for the majority shares will be capped at £40m. The value of 3Sixty's gross assets at 31 March 2019 was £9m. For the year ended 31 March 2019, 3Sixty made an operating loss of £750,000.
As at the date of this announcement, 13 sites were leased to 3Sixty following the joint venture arrangements.