MidOcean Partners, the private equity company that controls Laurel Pub Company, is to commence a formal auction for the business, The Times reports. It is understood to have appointed NM Rothschild to handle the sale of the business, which comprises 177 high street pubs and bars and will be valued at about £150m. GI Partners, the US private equity group that recently took Yates Group private, is expected to be among the main bidders. Laurel chief executive Ian Payne - a significant shareholder in the business - is expected to bid in tandem with his chairman John Lovering. After the sale of its 432-strong community pubs division to Greene King for £684m in July, Laurel was re-financed, with Royal Bank of Scotland and Barclays providing £110m of debt. The banks are said to be willing to retain their involvement in the event of a sale leaving bidders to come up with the remaining £40m of equity. The actual package would comprise around 160 sites as Laurel is already selling between 15 and 20 short leasehold properties on an individual basis. About half the sites are freehold. Around 65 of the 160 operate as Hog’s Head and 20 are under the Casa or RSVP brands.

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