M&B shareholders prepare for momentous AGM

M&B shareholders will descend on Birmingham’s International Convention Centre today for what promises to be a very significant annual general meeting.

The meeting is likely to be the culmination of the battle for control of the company’s boardroom as rebel shareholders seek to oust sitting chairman Simon Laffin and steer the pubco on a new course.

Majority shareholder Piedmont, investment vehicle for Bahamas-based billionaire Joe Lewis, is aiming to give the existing board a bloody nose by installing four new directors and ousting Mr Laffin from his post.

Piedmont, which owns 23% of M&B, wants the company to leverage greater value from its strong portfolio of brands and has spent the past few days talking to other non-aligned shareholders in an effort to drum up support for its campaign.

Reports have suggested that many will side with Mr Lewis.

Piedmont has nominated four potential non-executive directors: John Lovering, former chairman of Debenhams, Simon Burke, former chief executive of Hamleys toy shops, Jeremy Blood, a former director of Scottish & Newcastle, and Mike Balfour, founder of health club chain Fitness First.

It is thought the board will support Messers Lovering and Burke but reject the other nominees. With Piedmont refusing to back Mr Laffin, his position looks to be doomed.

Strengthening the Piedmont campaign is the likely support of Elpida, investment vehicle for Irish racing magnates JP McManus and John Magnier, who together hold a 17.6% stake in the company.

The existing board has tried to offset the campaign by going on the offensive and last week it outlined its plans for growth to city analysts.

The proposals include leveraging value from its pubs – which include the All Bar One, Harvester and Toby Carvery brands – by increasing food sales.

However, whether this will be enough to appease the rebels remains to be seen but whatever the outcome, the company looks set to enter a new era.