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Mitchells & Butlers seeks £350m cash injection

The group has also agreed a £150m three-year refinancing

Mitchells and Butlers has announced its intention to raise £350m through an underwritten open offer.

The proposed offer, which follows an original announcement on 7 January 2021, will include a facility for shareholders to apply for any shares not currently held.

A £150m three-year unsecured revolving credit facility has also been agreed between the restaurants, pubs, and bars operator and its banks subject to the completion of the open offer.

The share placing has been supported by the group’s major shareholders, Piedmont, Eplida Group, and Smoothfield Holding.

Moreover, the three firms have joined under a newly incorporated holding company, Odyzean, which will hold approximately 55% of the firm’s issued share capital.

The partnership will reportedly “address the significant capital needs” of the group, while providing a “clear and consistent framework” for their future relationship.

Bob Ivell, chairman at Mitchells and 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.”

He added that through the raised capital, the company will take advantage of its “strong property portfolio, well known brands and operational expertise”.

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