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Pub operator Ei Group to sell 370 properties for £348m

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Staff Writer |
Ei Group
Britain   The portfolio is being sold to Tavern Propco

Pub operator Ei Group said on Friday that it has agreed to dispose of 370 properties to Tavern Propco Limited for £348m in cash.

Ei said the disposal, which comprises a big chunk of its current commercial properties division, represents a successful outcome of the previously announced sale process designed to optimise value from this part of the group.

The portfolio is being sold to Tavern Propco - a newly-incorporate private company owned by investment funds managed by Davidson Kempner Capital Management - on a debt-free basis, subject to customary rent apportionment mechanics at completion.

Ei has been paid a deposit of £33.66m, which is non-refundable unless shareholders don't approve the disposal.

Ei said the sale value represents a 13 times multiple of earnings and is in line with the net book value of the assets, reinforcing the board's confidence in the "robustness" of the net asset value of the group.

The company said most of the proceeds will be used to cut debt, accelerating the delivery of the group's medium-term target leverage ratio of 6x net debt to EBITDA.

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