Mitchells & Butlers PLC
19 March 2008
19 March 2008
Mitchells & Butlers plc ("Mitchells & Butlers" or the "Group")
Mitchells & Butlers Statement
Mitchells & Butlers has noted comments from an equity analyst that capital
investment needs to be cut to retain the dividend payment and that the Company
could require a capital injection.
These comments are without any basis and Mitchells & Butlers categorically
refutes these suggestions.
The Board would make the following points:
1. The Group has borrowing facilities to meet all of its financial requirements.
The company has no requirement for any capital injection to meet its existing
2. It has fully adequate headroom against its facilities and this position is
expected to improve further as the Group continues to generate strong cash
3. The Group has all the necessary funding in place to support its existing
dividend policy and its investment programme.
4. Trading in the business continues to be resilient, with buoyant food sales,
strong drinks market share gains and continued improvements in productivity. As
a result, we expect to report a robust performance at the interim results in
As stated in January, the Board expects to announce the conclusion of the
strategic review by the end of May.
For further information, please contact:
Erik Castenskiold 0121 498 6513
Kathryn Holland 0121 498 4526
James Murgatroyd (Finsbury Group) 0207 251 3801
Citigroup Global Markets Limited ("Citi") which is authorised and regulated in
the United Kingdom by the Financial Services Authority, is acting for Mitchells
& Butlers and no one else in connection with this announcement and will not be
responsible to anyone other than Mitchells & Butlers for providing the
protections afforded to clients of Citi or for providing advice in relation to
the contents of this announcement, or for any other transaction, arrangement or
matters referred to in this announcement.
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any
person is, or becomes, "interested" (directly or indirectly) in 1% or more of
any class of "relevant securities" of Mitchells & Butlers, all "dealings" in any
"relevant securities" of that company (including by means of an option in
respect of, or a derivative referenced to, any such "relevant securities") must
be publicly disclosed by no later than 3.30 pm (London time) on the London
business day following the date of the relevant transaction. This requirement
will continue until the date on which the offer becomes, or is declared,
unconditional as to acceptances, lapses or is otherwise withdrawn or on which
the "offer period" otherwise ends. If two or more persons act together pursuant
to an agreement or understanding, whether formal or informal, to acquire an
"interest" in "relevant securities" of Mitchells & Butlers, they will be deemed
to be a single person for the purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant
securities" of Mitchells & Butlers by the offeror or Mitchells & Butlers, or by
any of their respective "associates", must be disclosed by no later than 12.00
noon (London time) on the London business day following the date of the relevant
A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities in
issue, can be found on the Takeover Panel's website at
"Interests in securities" arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the
Panel's website. If you are in any doubt as to whether or not you are required
to disclose a "dealing" under Rule 8, you should consult the Panel.
This information is provided by RNS
The company news service from the London Stock Exchange