19th May 2014 09:18
LONDON (Alliance News) - Pub operator Punch Taverns PLC Monday said it has reached an agreement to sell four of its pubs in central London to Morgana Ltd for a total of GBP6.7 million.
Punch Taverns said it will receive cash from the disposals, and will use the net proceeds to reduce its debt and reinvest in its pub estate. It said the pubs being sold off are freehold outlets located in central London.
The group has continued to close and sell off pubs in its non-core estate, and book hefty charges related to its capital restructuring, as it seeks more time to secure an agreement with its creditors for a broad restructuring of its debt pile.
For the financial year ended August 17, 2013, the four pubs being sold generated earnings before interest and tax of GBP0.3 million, and as at March 1 had a book value of GBP2.5 million.
Punch Taverns said the agreement is unconditional and is expected to be completed by the end of June.
Shares in the pub operator were flat Monday morning at 13.50 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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Punch Taverns PLC