Pub operator Mitchells & Butlers launched an open share offer to raise £351 million in additional capital on Monday February 22 as it recorded a plunge in sales due to the closure of pubs and restaurants in Britain's latest lockdown.
The Harvester, Toby Carvery and All Bar One owner said that its total managed sales between September 27 and January 16 slumped by 69.8% year-on-year.
Mitchells & Butlers initially announced the plan to raise £350 million in fresh equity from investors last week as it seeks to ride out the COVID-19 pandemic.
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On February 22, the crisis-hit company proposed to offer seven new shares for every 18 existing shares to qualifying shareholders, at a price of 210 pence per share.
The British pub operator said that its cash burn is estimated to be between £30 million and £35 million for four weeks since the start of the year during closures.
"The hospitality industry has done everything that has been asked of it to date and, now that the vaccines are being rolled out and infections are dropping, we are hopeful that pubs and restaurants will soon be allowed to reopen safely," Mitchells & Butlers CEO Phil Urban said.
Pension Funds Trustee Agreement
The company has also agreed with the trustee of its pension funds to delay monthly contributions from January until March of 2021.