Pub group cheered by property portfolio sale

The Plough, Harborne

EI Group has received £337m after completing the sale of the majority of a 370-property portfolio to a US hedge fund.

The Solihull-based pub group, which used to be called Enterprise Inns, has finalised a deal for 348 of the properties with Davidson Kempner Capital Management. The remaining 22, which will add a further £11m to the overall deal value, are expected to complete after receiving landlord consent.

EI intends to use the proceeds from the sale to repay and cancel the outstanding £35m balance on the group’s £50m term loan facility agreement and £115m to repay amounts drawn under its £150m revolving credit facility agreement.

It has also announced an additional £35m share buyback programme, following on from the £20m programme it completed in January.

Simon Townsend, EI Group’s chief executive, said: “Today’s announcement is a significant milestone for the business and evidence of our ability to unlock value across our estate and realise attractive cash proceeds for shareholders.

“This disposal will allow us to focus on driving growth across our core Publican Partnerships, Managed Operations and Managed Investments businesses, while also reducing our debt and delivering further shareholder value.”

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