Mitchells & Butlers buy Whitebread's 239 pubs at £497 million |
|
|
Published
:
Fri, 21 Jul 2006 12:35
|
LONDON: The U.K. pubs group Mitchells & Butlers Plc is buying 239 pub restaurants from leisure company Whitebread Plc for about 497 million pounds. The pubs are located throughout the country and include four, which are being developed. They also include those from the Brewers Fayre and Beefeater chains.
The company said it will convert the acquired pubs into its Harvester, Vintage Inn and Toby Carvery brands. The deal is being funded by a short-term bank facility provided by Bank of Scotland. The company maintained that it still hoped to return 500 million pounds to shareholders and that its annual results would be in line with its expectations.
Whitbread, founded in the 18th century as a brewer, hopes to make use of the cash to bring down its debts. The company said it intends to focus on its Premier Travel Inn lodging chain and will retain pubs attached to this chain. The company had announced earlier its plans to spin off its freestanding pub sites and then build some 100 new hotels, expand abroad and increase the number of Costa coffee shops to over 1,000 by 2010.
Mitchells & Butlers came into being when the erstwhile Bass Plc split its bar and hotel businesses in 2003. Among its prime properties is the Deacon Brodie's Tavern in Edinburgh.
The transaction is expected to be completed by 28 July, both the companies said.
|
|
|
|
|
|
|
| Stock
Quotes * |
|
NASDAQ
|
|
1449.80 |
+51.73 (
3.63 %)
|
| SYMBOL (
2008-12-02 ) |
| LAST |
CHANGE
|
|
CARNIVAL
(
11:35am )
|
|
1347.00 |
+51.00 (
4.02 %)
|
| SYMBOL (
2008-12-02 )
|
| LAST |
CHANGE
|
|
IBM
(
4:01pm ) |
|
79.84 |
+2.94 (
3.78 %)
|
| SYMBOL (
2008-12-02 )
|
| LAST |
CHANGE
|
|
GOOGLE
(
4:00pm ) |
|
275.11 |
+9.12 (
3.37 %)
|
|
|
Print this Story
Hilary Spurling wins Whitebread award for her 'Matisse the Master' 