Spin-off go-ahead at M&B
MITCHELLS & Butlers has finally given in to investor and property magnate Robert Tchenguiz and will spin off its £6billion pub property empire as soon as the markets allow.
The All Bar One and Toby Inns owner also said two Tchenguiz representatives had been appointed to its board as it unveiled a 5.6 per cent fall in pre-tax profits to £84million on sales flat at £995million for the half year to April. The shares rose 14.25p to 342.75p.
Spinning out the property would allow M&B to fully realise its value by raising debt against it, saving £20million a year in tax. But analysts warned it could be a long time before it happened due to the state of debt markets.
Chief executive Tim Clarke said M&B remained in talks with private equity companies about a possible stake sale or further acquisitions. It is believed buying the Spirit pubs from Punch, or Whitbread’s pub-restaurants, remain preferred options.
Tchenguiz, who took a 3 per cent stake in Whitbread recently, owns 27 per cent of M&B. Clarke said he was “very happy” to work with his representatives, Tim Smalley and Aaron Brown.
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