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| Tuesday, 20 March, 2001, 08:04 GMT Whitbread to sell pubs for �1.6bn ![]() Whitbread is focusing on leisure and hotels The hotels and leisure group Whitbread has confirmed that it is to sell its 3,000-strong pub division to Morgan Grenfell Private Equity (MGPE) for �1.625bn. The deal follows a hotly contested final round of bidding in which MGPE narrowly beat Japanese investment bank Nomura, already Britain's biggest pub landlord, Punch Group and a joint bid from Candover and Pubmaster. It includes a cash payment of 230p per share or around �1.13bn to Whitbread's shareholders.
The company put the pubs and bars division up for sale in a radical restructuring in October. Restructuring It said it wanted to focus on its core hotels and leisure divisions - including Marriott hotels, Pizza Hut restaurants and its David Lloyd Leisure business. "Whitbread will be a highly focused business concentrating on lodging, eating out and active leisure," the group's chief executive David Thomas said in a statement. Last year Whitbread sold its brewing interests to Belgium's Interbrew in a �400m deal. However, the pub sale could be held up because several bidders are understood to be concerned about the details of the contract. The UK's brewing industry is going through an unprecedented period of consolidation in the face of a declining market for cask ales. Whitbread shares were trading slightly up at 602p at 0930 GMT Tuesday. |
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