14th Apr 2008 07:01
Mitchells & Butlers PLC14 April 2008 14 April 2008 Mitchells & Butlers plc Strategic Review Update Following the recent press comment, Mitchells & Butlers announces an update tothe strategic review, which is due to be completed by the Interim Results. Since the announcement on 29 January 2008 stating that Mitchells & Butlers wasinitiating a strategic review, the Board has been actively engaged indiscussions to explore ways of creating value for shareholders. As part of thisprocess, the Board has received a number of preliminary proposals from privateequity investors to take a minority interest in Mitchells & Butlers at amaterial premium to the current share price. The Board believes that significant value through enhanced sales andprofitability can be created by integrating Punch's managed pub business intoMitchells & Butlers operational and brand structure. The Board has now initiatedan approach to Punch to explore whether terms for such a mutually beneficialtransaction can be agreed. The Board is actively considering how such an acquisition of Punch's managed pubbusiness could be best funded. One form of funding being considered is the basison which the private equity investors, who support Mitchells & Butlers strategyof consolidation, might invest in the Company. Any transaction structure andfinancing will be assessed by the Board in the light of creating value for allexisting shareholders and will be subject to any necessary shareholderapprovals. On 9 April 2008, Mitchells & Butlers reported resilient sales growth and robustoperating profits performance together with strong operational cash generationfor the first 27 weeks of the financial year. The Company has no requirement forany capital injection to meet its existing funding needs. The Board is seeking to clarify the proposals from all interested parties priorto the conclusion of the review. All the discussions are at a preliminary stageand subject to further due diligence and negotiation. There can therefore be nocertainty that any transaction will be concluded. For further information, please contact: Investor Relations:Erik Castenskiold 0121 498 6513 Media:Kathryn Holland 0121 498 4526James Murgatroyd (Finsbury Group) 0207 251 3801 Notes for editors: - Mitchells & Butlers owns and operates around 2,000 high quality pubs in primelocations nationwide. The Group's predominantly freehold, managed estate isbiased towards large pubs in residential locations. With around 3% of the pubsin the UK, Mitchells & Butlers has 10% of industry sales and average weeklysales per pub over three times greater than that of the average UK pub. - Mitchells & Butlers' leading portfolio of brands and formats includes EmberInns, Harvester, Sizzling Pub Co., Toby Carvery, Vintage Inns, All Bar One,O'Neill's, Nicholson's and Browns. In addition, Mitchells & Butlers operates alarge number of individual city centre and residential pubs. Dealing Disclosure Requirements Under the provisions of Rule 8.3 of the Takeover Code (the "City Code"), if anyperson is, or becomes, "interested" (directly or indirectly) in 1% or more ofany class of "relevant securities" of Mitchells & Butlers plc ("Mitchells &Butlers") or Punch Taverns plc ("Punch"), all "dealings" in any "relevantsecurities" of that company (including by means of an option in respect of, or aderivative referenced to, any such "relevant securities") must be publiclydisclosed by no later than 3.30 pm (London time) on the London business dayfollowing the date of the relevant transaction. This requirement will continueuntil the date on which any offer becomes, or is declared, unconditional as toacceptances, lapses or is otherwise withdrawn or on which the "offer period"otherwise ends. If two or more persons act together pursuant to an agreement orunderstanding, whether formal or informal, to acquire an "interest" in "relevantsecurities" of Mitchells & Butlers or Punch, they will be deemed to be a singleperson for the purpose of Rule 8.3. Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevantsecurities" of Mitchells & Butlers or Punch by Mitchells & Butlers or Punch, orby any of their respective "associates", must be disclosed by no later than12.00 noon (London time) on the London business day following the date of therelevant transaction. A disclosure table, giving details of the companies in whose "relevantsecurities" "dealings" should be disclosed, and the number of such securities inissue, can be found on the Takeover Panel's website atwww.thetakeoverpanel.org.uk. "Interests in securities" arise, in summary, when a person has long economicexposure, whether conditional or absolute, to changes in the price ofsecurities. In particular, a person will be treated as having an "interest" byvirtue of the ownership or control of securities, or by virtue of any option inrespect of, or derivative referenced to, securities. Terms in quotation marks are defined in the Code, which can also be found on thePanel's website. If you are in any doubt as to whether or not you are requiredto disclose a "dealing" under Rule 8, you should consult the Panel. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Mitchells & Butlers