Mitchells & Butlers reported pub sell-off pushes share price up

Pub and restaurant chain giants Mitchells & Butlers (LON:MAB) has hit news headlines this morning with reports that the owner of Havester, All Bar One and Vintage Inns is plotting to sell 300 of its drink-focussed pubs to fund a switch in concentration to its restaurants business.

Rob Hull
shareprices.com - Tuesday, May 04, 2010

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One of Mitchells & Butlers All Bar One stores in London

The Telegraph reported this morning the group’s aim is to raise around £500m to focus more attention on its food-led brands.

And the news has excited investors with the share price in the British pub group climbing by as much as 1.89 per cent on the FTSE 250 to a price of 334.10p fresh from the reports this morning.

But it’s not a move that will surprise anyone tracking the pub group after it released a Strategy Review Statement on 24 March 2010 suggesting a new focus towards eateries.

The statement said the main conclusions from the review of the business was to ‘rapidly reshape Mitchells & Butlers into a food-led business centred around core concepts which have significant growth potential’ and also planned to ‘withdraw from the more price sensitive drinks-led businesses’.

As a result, more funding was going to be centred towards improving the high-street prominence of Harvester and Toby Carvery and implementing new outlets in ‘high traffic locations’.

According to the Telegraph, the group has employed the services of Sepient Corporate Finance to find a buyer for its drinks-led pubs.

Mitchells & Butlers has also been in the news today for suggesting that supermarkets should have to share the same social responsibilities to drinker as pubs do by reducing irresponsible promotions on alcohol.

 

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