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15 Feb 2021 | 07:01

Mitchells & Butlers to raise £350m through placing

(Sharecast News) - Harvester owner Mitchells & Butlers said it planned to raise £350m through an open offer and had also reached agreement with its banks for a new £150m three-year year unsecured revolving credit facility to bolster its balance sheet. The company, which has seen sales battered by the Covid-19 pandemic, said it would issue around 167m new shares at 210p a share - a 36% discount to the closing price on February 12.

Major shareholders Piedmont, Elpida and Smoothfield, which collectively own about 55% of the company, "fully supported" the offer, Mitchells & Butlers said on Monday, adding that the trio had consolidated their holdings under a newly incorporated holding company Odyzean.

"Odyzean has indicated its intention to make available the full amount of £350m to be raised, to ensure that the proposed open offer will be fully subscribed in all circumstances," Mitchells & Butlers said.

The company added that it had agreed waivers over potential breaches under its secured debt financing as a result of the ongoing impact of Covid and measures taken to stem the spread of the virus.

"Further to this, Odyzean has communicated to the company that it is fully supportive of Mitchells & Butlers' management team, which has re-established the business as a sector leader with a strong focus and direction."

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