M&B is looking to raise more capital to keep itself afloat as the pandemic hurt sales
Mitchells & Butlers, one of the largest British operators of restaurants, pubs, and bars, reported a drop in sales.
The operator revealed that total sales dropped 69.8% on-year after it had to close pubs and restaurants due to the latest lockdown to curb the spread of the newest COVID-19 strain.
The results came after the company announced that it was looking to raise $486.05 million through an offering of shares, and it has made a deal with its bankers for a news credit. M&B proposed to offer seven new shares for every 18 existing shares.
Moreover, Piedmont Inc, Elpida Group and Smoothfield Holding formed a consortium named Odyzean Ltd to become a majority shareholder, owning a 55% stake in the company.
However, Mitchells & Butlers is optimistic about the future, given that “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,” CEO Phil Urban said.
Following the news, Mitchells & Butlers stock price fell 1.5%.
Sources: cn.reuters.com, investing.com
This information is prepared for general circulation. It does not have regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of sc.capex.com