Business
Mitchells & Butlers Response to Piedmont
Mitchells & Butlers Response to Piedmont.
About this update from Mitchells & Butlers Plc
[{"type":"text","content":"\n \nRNS Number : 1160O Mitchells & Butlers PLC 13 September 2011 \n \n\n12 September 2011\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION\n \nMitchells & Butlers - Response to announcement in relation to a possible offer by Piedmont Inc. \n \nThe Independent Directors of the Board of Mitchells & Butlers plc (the \"Company\") note the announcement by Piedmont Inc. (\"Piedmont\") made today regarding a possible offer for the Company (the \"Possible Offer\").\nBackground\nOn 27 August 2011, Piedmont made an initial approach to Mitchells & Butlers to make an offer for the Company at 224 pence per share, a nil premium to the closing price of the Company's shares on 26 August 2011 (the \"Initial Approach\"). At such time, the Company's shares were trading at the lowest level since 25 March 2009 and at a 38% discount to the highest trading level during this period of 361 pence on 6 January 2011. \nThe Initial Approach consisted of a cash offer with an alternative for Mitchells & Butlers shareholders to elect to receive shares in a newly formed unlisted entity controlled by Piedmont. \nThe Independent Directors informed Piedmont that the terms of the Initial Approach significantly undervalued the Company and that they would not recommend an offer on such terms. \nTerms of the Possible Offer\nAs detailed in the announcement by Piedmont today, the Possible Offer consists of a possible offer of 230 pence per share, a 2.4% discount to the Company's share price at the close of market trading on the London Stock Exchange on 12 September 2011¹.\nRecommendation\nThe Independent Directors, who have been so advised by UBS Investment Bank, unanimously believe that the terms of the Possible Offer significantly undervalues the Company and accordingly would not recommend an offer, if made, on such terms. In providing advice to the Independent Directors, UBS Investment Bank has taken into account the commercial assessments of the Independent Directors.\nThis statement is being made without the agreement of Piedmont. \nThe Independent Directors note that the Possible Offer does not amount to a firm intention to make an offer u...