15 February 2021
Odyzean Limited ("Odyzean")
Mitchells & Butlers plc ("Mitchells & Butlers" or the "Company")
Support for Mitchells & Butlers's proposed Open Offer
Odyzean notes the statement issued today by Mitchells & Butlers of its intention to raise £350 million by means of a fully pre-emptive Open Offer (the "Proposed Open Offer").
Odyzean is a new holding company formed to consolidate the shareholdings in Mitchells & Butlers of Piedmont Inc., Elpida Group Limited, and Smoothfield Holding Ltd. (together, the "Consortium") in order to address the significant capital needs of Mitchells & Butlers and to provide a clear and consistent framework for the Consortium's future relationship with the Company.
On 7 January 2021, Mitchells & Butlers announced that all of its sites were closed and that it had only £125m of cash (with all facilities drawn) with an ongoing monthly cash burn of approximately £35m to £40m and a further £50m of debt service due on 15 March 2021. The directors confirmed that they were exploring an equity raise. Since that announcement, the priority for the Consortium has been to ensure that Mitchells & Butlers is re-capitalised and that the future of the business is secured.
Odyzean intends to make available the full amount of £350 million to be raised by Mitchells & Butlers to ensure that the Proposed Open Offer will be fully subscribed in all circumstances. Odyzean intends to enter into an irrevocable commitment with Mitchells & Butlers to (i) subscribe for the Odyzean group's basic entitlements under the Proposed Open Offer, and (ii) to apply under the excess application facility for all of the Open Offer shares that are not taken up by other shareholders.
Odyzean is fully supportive of Mitchells & Butlers's management team, which has re-established the business as a sector leader with a strong focus and direction. In order to streamline decision-making, Odyzean intends to review the composition of the Board of Directors of Mitchells & Butlers, which may result in a reduced level of independent Non-Executive representation in the future. Odyzean also intends to work with the management team to ensure the strategy and structure of the business are appropriate to optimise its long-term success and that the time and cost devoted to public company matters are reduced.
A spokesperson for Odyzean said:
"We are determined to support Mitchells & Butlers through the current difficult environment. As a result of the pandemic, Mitchells & Butlers has been forced to close all its venues, with significant negative implications for its cash flows and balance sheet. Without this major equity injection, the prospects for the business, its 1,600 venues, and over 40,000 UK employees would be bleak. Our significant financial commitment will help to secure the future of the business and provide a platform for the strong management team to restore the Company's operations to good health when circumstances allow."
MHP Communications (Financial PR Adviser to Odyzean) +44 (0) 20 3128 8793
Reg Hoare / Pete Lambie +44 (0) 20 3128 8570