Disposal of 158 non-core pubs

Punch Taverns plc

("Punch")

Disposal of 158 non-core pubs

Punch Taverns plc is pleased to announce that it has reached agreement to sell 158 pubs which are not core to Punch's estate for £53.5 million to NewRiver Retail, a leading Real Estate Investment Trust focused on the UK retail sector.

This agreement is consistent with Punch's strategy to sell the non-core estate at a rate of approximately 200 pubs per year. The disposal at an average of c.£340,000 per pub, is above book value and significantly ahead of the average proceeds achieved for previous non-core disposals.

The agreement is unconditional and is expected to complete on 11 September 2015. The consideration will be satisfied in cash and proceeds will be used to reduce net debt.

The disposal comprises 150 pubs from the non-core estate and 8 pubs from the core estate that no longer meet our criteria as a core pub. Post transaction, the core estate will comprise c.2,900 pubs and the non-core estate will have c.550 pubs.

The pubs being disposed generated earnings before interest and tax of £7.3 million over the last twelve months and have a current book value of £52.5 million.

Punch will issue a full year trading update for the financial year to 22 August 2015 on 1 September 2015.

Duncan Garrood, Chief Executive Officer of Punch Taverns plc, commented:

"This transaction is in line with our stated strategy of disposing pubs within the non-core estate, reducing the overall level of our debt, whilst focusing on our higher quality core pub estate."

24 August 2015

Enquiries: