M&B approach for Punch managed pubs

April 15, 2008: Mitchells & Butlers has made an approach for Punch's managed pub business.

An M&B spokesman said: "The board is actively considering how such an acquisition of Punch's managed pub business could be best funded. One form of funding being considered is the basis on which the private equity investors, who support Mitchells & Butlers strategy of consolidation, might invest in the company.

"Any transaction structure and financing will be assessed by the Board in the light of creating value for all existing shareholders and will be subject to any necessary shareholder approvals."

On April 9 Mitchells & Butlers reported resilient sales growth and robust operating profits performance, together with strong operational cash generation for the first 27 weeks of the financial year. The company has no requirement for any capital injection to meet its existing funding needs.