British pubs group backed by McManus and Magnier launches €400m shares sale

Mitchells & Butlers pubs group is part-owned by Irish investors JP McManus and John Magnier.

Shares in UK pubs group Mitchells & Butlers (M&B) — which is part-owned Irish investors JP McManus and John Magnier — continued their dramatic recovery, as it launched its £350m (€400m) sale of stock, part of the firm's survival plan that is based on hopes of vaccines leading to an early lifting of Britain's lockdown. 

Shares in the group which owns 1,600 outlets — including the All Bar One, Browns, Ember Inns, Harvester, Miller & Carter, Nicholson's, Sizzling Pubs, Toby Carvery, and Vintage Inns — climbed by almost 10% as the shares raise have been backed by all the major shareholders, including Mr McManus and Mr Magnier who own around 23.5% in M&B through their vehicle called Elpida. 

The shares have now only fallen 15% since this time last year — just before the onset of the pandemic — and its devastating effects on the hospitality trade in Britain and elsewhere in Europe. M&B is valued at £1.37bn. 

The pub operator, whose German businesses were closed last November, said its cash burn is estimated to be between £30m and £35m for four weeks since the start of the year during closures.

Last week, M&B said it plans to secure £150m in new credit lines as it raced to raise new funds ahead of a debt repayment scheduled for mid-March.