Mitchells & Butlers (M&B) is looking at splitting itself in two so it can move its property assets into a REIT next year.
The company, which has about 2,000 pubs, estimates it could receive a one-off benefit of up to £500m from the move. This would see it split into an operating company which would lease the pubs from a separate property vehicle.
M&B has capitalised on the trend for almost half the adult population visiting a pub to eat at least once a month by repositioning its estate towards large pubs. The Financial Times comments that another bid from R20 could be on the cards if the company shows any signs of weakness. M&B, which has about £5.5bn of assets, rejected a bid from R20 in May.
References: Financial Times 30/11/06 page 20, The Times 30/11/06 page 54 (Need to know), page 60, The Daily Telegraph 30/11/06 page B4
