Pub group launches £350m equity raise to stave off pandemic blues

The majority stakeholders of Mitchells & Butlers (M&B) could be about to inject £350m into the company after coming together to form a new bloc.

The pubco has announced this morning that Piedmont, Elpida and Smoothfield, which own a 55% stake in M&B, have formed a new entity called the Odyzean Group and could increase their stake after a £350m share offer was announced this morning.

The new group says it will look to streamline decision-making at Mitchells & Butlers by reducing the new number of non-executive directors on the company’s board.

Meanwhile, Mitchells & Butlers has also announced that it has agreed a £150m unsecured revolving credit facility with its banks.

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.”