Ei Group sells 370 pubs to Tavern Propco for €390.9m (GB)

Ei Group sells 370 pubs to Tavern Propco for €390.9m (GB)

Ei Group, the largest owner and operator of pubs in the UK, has entered into agreements with Tavern Propco to sell 370-property portfolio for €390.9m (£348m). Tavern Propco is a newly incorporated private company, which is owned, through intermediate holding companies, by investment funds managed and/or advised by Davidson Kempner Capital Management.

 

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. A significant proportion of the Disposal proceeds will be used to reduce the level of the Group's outstanding debt, accelerating the delivery of the company's medium-term target leverage ratio of 6x net debt to EBITDA.

 

Simon Townsend, CEO of Ei Group said: "We are very pleased to have agreed the sale of the portfolio, which is in line with our strategy of delivering attractive and sustainable returns to Shareholders by unlocking the embedded value and optimising the returns from every asset within the business. The portfolio is comprised of high-quality assets which we believe are best suited to a free-of-tie, rent-only business model. Throughout the sale process, we have been impressed with the commitment and speed of execution demonstrated by Davidson Kempner, a global institutional investment management firm with over €27bn (US$31bn) in assets under management and a long track record of investing in real estate." 

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