By Scott Wright
MITCHELLS & Butlers has raised more than £351 million from its majority shareholders to bolster its coronavirus-ravaged finances.
The pub giant, owner of a vast portfolio of including The Horseshoe Bar in Glasgow and The Last Drop in Edinburgh, confirmed the capital was generated from a pre-emptive open offer that closed on Wednesday.
M&B, which runs around 1,700 pubs in the UK under brands such as O’Neill’s, All Bar One and Toby Carvery, launched the “critical” fundraiser to stabilise its financial position on February 22.
The company said then that it been burning through between £30m and £35m for every four-week period since it was forced to close its pubs under lockdown.
It has securitised debt serving costs of £51m per quarter. M&B noted at the time that cash raised by the open offer would allow it to reduce its unsecured debt, support its debt financing and allow it to meet its fixed obligations, while also enabling it to resume investing in its estate.
The open offer was underwritten by majority shareholder Odyzean, which holds 55 per cent of the issued shares in the company. Odyzean is a new holding company created by shareholders Piedmont, Elpida and Smoothfield, which came together as a concert party and consolidated their holdings.
Effectively the new owner of the company, Odyzean signalled its intention in February to make avaiable the full amount of the £350m to be raised and ensure the open offer was fully subscribed.
Shareholders in M&B voted overwhelmingly in passing resolutions allowing to the company to proceed with the open offer at a general meeting held yesterday.
Shares closed up 7p, or 2.19 per cent, at 326.5p.
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