Mitchells & Butlers (M&B) is considering becoming the first UK pub group to become a Reit (real estate investment trust).
The company is thought to have the backing of financier Robert Tchenguiz, who holds 19% of M&B through shares and derivatives. Both parties believe a Reit is the best way to unlock value from the company’s property portfolio.
The Reit will absorb the group’s debt of £2.5bn, and an operating company will manage the pub and restaurant estate.
Shares in M&B jumped 4.8% to 660p at the news.
Meanwhile Tchenguiz has denied rumours that he would need to sell his stake in M&B to cover recent losses by retailer J Sainsbury, of which he owns 10%.
Financial Times 10/11/07 page 17 (Companies & Markets), page 36 (Companies & Markets)
The Times 10/11/07 page 75 (Large Caps, Business)
Daily Mail 10/11/07 page 108 (Market Report, City & Finance)
