Pub, bar and restaurant group Mitchells & Butlers (M&B) has completed its capital fundraise, securing more than £350m from shareholders.
The Toby Cavery and All Bar One operator raised the funds to the tune of £350.51m through an open offer that will see it issue 167 million new shares.
The raise sees shareholder groupings Piedmont, Elpida Group and Smoothfield Holding being acquired under the Odyzean Group, which will hold 55% of the company’s issued share capital.
Before launching the raise, M&B said its liquidity position had “deteriorated significantly” as a result of the impact of the Covid-19 pandemic, with the open offer critical for the continued operation of the group and its immediate financial stability.
Mitchells & Butlers (M&B) has reached an agreement with 3Sixty Restaurants CEO James Horler, and its other shareholders, to continue with the joint venture arrangements in relation to Ego Restaurants.
Harvester and All Bar One operator Mitchells & Butlers has made strides to ease its significant lockdown cash burn through an equity raise and unsecured revolving credit facility.
Last modified on Tue 16 Feb 2021 00.10 EST
The owner of Harvester restaurants and Nicholsonâs pubs plans to raise £350m from a group of tycoons known as the âSandy Lane setâ after it came close to breaching the terms on its debts.
Mitchells & Butlers said it had agreed the equity raise with three investment holding companies as part of a £500m rescue package that also included a £150m three-year loan facility.
The rescue investors include the currency trader Joe Lewis, the Irish billionaires and horse racing tycoons John Magnier and JP McManus, and Derrick Smith, another businessman with horse racing interests. They are known collectively as the âSandy Lane setâ, after the glamorous Barbados hotel where they liked to gather.