Major shareholders in Mitchells & Butlers (M&B), the owner of All Bar One and Toby Carvery, have taken control of the pub group as it seeks to raise £350m to keep it afloat.
The firm said this morning that it intends to raise £350m through an underwritten fully preemptive open offer to address its “significant capital needs”.
M&B’s major shareholders Piedmont, Elpida and Smoothfield – who collectively own 55 per cent of the issued share capital – have consolidated their stakes under a new holding company, Odyzean Limited.
Odyzean now controls the majority of votes in the company, marking a technical change of control.
The consortium has confirmed that it will provide the full £350m capital target “to ensure that the proposed open offer will be fully subscribed in all circumstances”.
M&B, which also owns Nicholson’s, O’Neill’s and Harvester, said its investors remain “fully supportive” of its management team.
Bob Ivell, chairman of M&B, said this morning: “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.”