Shares digital

Leisure entrepreneur Trevor Hemmings has acquired a 2.5% stake in troubled pub operator Mitchells & Butlers (MAB). Hemmings owns around 600 tenanted pubs including Trust Inns and Herald Inns & Bars, a chain of late-night bars.

The shares have been acquired through a family trust, and it is thought Hemmings is seeking to benefit from a potential takeover of M&B, rather table a bid himself. Punch Taverns (PUB) has made the only formal approach on M&B so far, but analysts reckon there are several other interested parties. The pub operator’s significant shareholders include Elipda, an investment company controlled by the family trusts of John Magnier and JP McManus. The Irish racing tycoons fought for control of Manchester United football team in 2004.

Robert Tchenguiz, another property tycoon, owns 23% of M&B and is still seen to be interested in extracting value from the pub operator’s property assets. Private equity groups Blackstone, CVC and KKR could also bid. Mark Brumby, analyst at stockbroker Blue Oar, says M&B is unlikely to stay independent. He believes Punch could emerge as the winner, even if a rival bid is tabled. But ‘it is all a question of probabilities rather than certainties,’ Brumby adds.

Shares says: The stake building is merely investors getting into position. Expect a flurry of M&A activity on M&B within days.

HOLD Mitchells & Butlers, Punch Taverns

by: Dan Coatsworth