Mitchells & Butlers has set out further details of its plans to launch of an open offer to raise up to £351m.

The group said its liquidity position had “deteriorated significantly” as a result of the impact of the Covid-19 pandemic, with the open offer critical for the continued operation of the group and its immediate financial stability.

The open offer provides the company with the capital to reduce its unsecured debt and to support its secured debt financing through an injection of equity, allowing it to meet its fixed obligations, M&B said.

It will also enable the resumption of investment in the estate to maintain its competitive position, provide the financial stability and strength to emerge from the crisis, and allow previous momentum to be regained.

On 14 February 2021, the Company reached agreement with its banks for a new £150m three-year unsecured revolving credit facility, which is conditional on completion of the open offer.

Agreement was reached with HSBC in respect of potential breaches under its secured debt financing.

The company is proposing to offer new shares to all qualifying shareholders at a price of 210 pence per share, on the basis of 7 new shares for every 18 existing shares.

As announced on 15 February, Piedmont Inc., Elpida Group Limited and Smoothfield Holding Ltd. have been acquired by Odyzean Group, which will hold approximately 55% of the company’s issued share capital.

Odyzean has undertaken to take up its entitlements under the open offer and to subscribe for any additional shares that become available.

The open offer is conditional upon shareholder approval.

Morgan Stanley is acting as financial adviser, co-ordinator, joint bookrunner, corporate broker and sponsor, alongside Rothschild & Co as financial adviser to the company.

HSBC and Santander are acting as joint bookrunners.

Documents relating to the Open Offer and details of a conference call at 8.30am can be found at