Thursday 11 March 2021 8:13 am

Pub group Mitchells & Butlers seals £350m emergency cash raise

Mitchells & Butlers today confirmed it has raised £350m in emergency funding after shareholders took control of the embattled pub group.

The company, which owns Toby Cavery and All Bar One, raised £350.5m through an open offer that will see it issue 167m new shares.

Read more: Toby Carvery owner Mitchells & Butlers launches £351m ‘critical’ cash raise after liquidity deteriorates

Mitchells & Butlers launched the cash raise last month after its liquidity “deteriorated significantly” as a result of lockdown measures during the pandemic.

The firm previously said the cash injection would help it to reduce its unsecured debt, meet its fixed payment obligations and invest in its estate.

It comes after major shareholders took control of the pub group, which also owns Nicholson’s, O’Neill’s and Harvester, as it struggled to stay afloat due to the Covid crisis.

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. This marks a technical change in control of the company.

The open offer will now allow M&B to access a new £150m three-year unsecured revolving credit facility with its banks.

It has also reached agreements with its lenders in relation to breaches of its secured debt financing. 

Read more: Mitchells & Butlers seeks £350m cash injection as major shareholders take control

The cash raise remains conditional on approval by shareholders at a general meeting set to be held today.

It has also made an application to the Financial Conduct Authority for the new shares to be admitted to the London Stock Exchange. They are expected to begin trading tomorrow.