Mitchells & Butlers Share Discussion Threads

[washbrook] 28/11/2003 07:36

Top 4 gainers last 5days on London Stock Exchange[equities- ]
HBOS 5 days
MAB 5 days
EMAP 5 days
ARM 4 days

[thesilentassassin] 27/11/2003 22:30

Certainly all shares purchased up to and including this Friday qualify. Not sure about Monday the letter from my stockbroker does not win any awards for plain english on this matter.

[washbrook] 27/11/2003 21:32

The record date as the silentassasin pointed out is 1.12.03.The xd dividend is usually 2 trading days prior to the record date in this case Thursday today would have been xd but it is'nt in this case.
I spoke to my stockbroker this morning and he did not know.
I suspect 1.12.03 will be xd.If you want to call it that but it isn't.


The company said that an EGM to approve the share consolidation will take place on 1 December 2003.

The total amount to be raised is £1.9bn and the cash interest cost of the securitised debt will be 6.0%. The net proceeds of the securitisation will be used principally to repay the Group's existing borrowings and to return £500m to


It does not matter a fig when they go xd you will have your readjusted shares plus the divi.
It may well be that when the adjustment is made your value- in my opinion will be higher.
Remember the debt at the present time is cheaper than the equity

[washbrook] 27/11/2003 21:26

habitualvoyeur.
Why should you pay stamp duty you already paid it when you bought the shares.
Why pay commission too,your management Isa may charge a small commision but why should he ,He only has to press a button for the changes.

ps I have never has ISAS and have to intention ever giving part of my gains to anyone else.
They do not supplement you when you have a loss.

[thesilentassassin] 27/11/2003 21:22

bought in few days ago at @231 so far so good. Hope the results on 04/12 give another boost.

[washbrook] 27/11/2003 21:18

Should have a good day on Friday after being down early today near it's days low finished near it's daily high.

[thesilentassassin] 27/11/2003 21:17

MITCHELLS & BUTLERS PLC

#1.9bn Securitisation and return of #500m to shareholders

Mitchells & Butlers announces that it has today completed the securitisation of
Mitchells & Butlers Retail Limited, raising #1.9bn.

The Board is proposing to pay a special dividend of 68 pence per share


The record date for entitlement to the special dividend is 6.00pm on 1 December
2003 and the special dividend is expected to be paid to shareholders on 8
December 2003

[habitualvoyeur] 27/11/2003 20:47

Sorry does/did this go X special div today or on monday
ie - if I picked some up tomorrow would I get it or not - the divi ?

Do I pay the extra stamp and comission and then get the tax rebate on the divi in my ISA, or do I buy next week pre results after the consolidation ?

Say 1000 shares @ 240 = 2400+12 stamp = 2412+ dealing £10
Divi = 680 7.5% tax credit = £51

any ideas

[onehanded] 27/11/2003 07:42

A move to keep this the FTSE 100 I see is on the way. A broker upgrade just before Dec 9th should do it!!!. OR a share buyback statement on Dec4th. This would catch the trakers who have sold and force a buying spree by them which will push price past £3.60 and breakout. Exciting week ahead.

[onehanded] 27/11/2003 07:39

Price should not drop as consolidation prevents this. If you buy after the divi then you gain no advantage ifyou attend to buy soon.

[onehanded] 27/11/2003 07:37

Yes but now less shares on the market and with mega good results next week, you need to be in by Dec 1st. This is a takeover target for next year.

[washbrook] 26/11/2003 20:56

My interpretation of the 68p going xd on Monday.
Suppose you have 1000 shares 235.5p [tonights close] =£2355
Come Monday you will have a reduction in your shareholding ie 12/17 times 1000=
705 shares X 235.5p =£1660 plus 1000 times 68p =£2340 therefore no marginal change.

[washbrook] 26/11/2003 20:56

My interpretation of the 68p going xd on Monday.
Suppose you have 1000 shares 235.5p [tonights close] =£2355
Come Monday you will have a reduction in your shareholding ie 12/17 times 1000=
705 shares X 235.5p =£1660 plus 1000 times 68p =£2340 therefore no marginal change.

[washbrook] 26/11/2003 20:42

josephsmith :
my interpretation.
Say you have a 1000 shares/17 times 12 new holding=705 shares.
Working on tonights close 1000 times 235.5p=£2355
Monday at tonights close705 times 235.5p =£1660.275 plus dividends of £680
Therefore £1660.275 plus £680= £2340.27
Therefore no marginal change.

[washbrook] 26/11/2003 20:30

josephsmith:-Not noticed you for a while.


13.11.03 :-0.75, (230.75) announces that it has today completed the securitisation of Mitchells & Butlers Retail Limited, raising £1.9bn. The Board is proposing to pay a special dividend of 68p per share which will be accompanied by a consolidation of the Company's ordinary share capital. The consolidation, which is a proportionate reduction in the number of shares in issue, will allow comparability of the Company's share price and dividend per share before and after the payment of the special dividend. Subject to shareholder approval, for every 17 existing ordinary shares held on 1 December 2003, shareholders will receive 12 new ordinary shares as well as the special dividend of 68p per existing ordinary share. The consolidation ratio is based on the market capitalisation of the Company at close of business on 12 November 2003 - the latest practicable date prior to the publication of the circular to shareholders. The company said that an EGM to approve the share consolidation will take place on 1 December 2003. The record date for entitlement to the special dividend is 1800 GMT on 1 December 2003 and the special dividend is expected to be paid to shareholders on 8 December 2003.

[josephmsmith] 26/11/2003 20:20

Question?

Is the price of MAB gonna open up 68p lower (or thereabouts) on Monday morning?

[washbrook] 25/11/2003 23:10

FIND A M&B PUB

[washbrook] 25/11/2003 23:02

Mitchells & Butlers was founded in 1898 from the merger of two Midlands' family businesses, both owning breweries and pub estates. Mitchells & Butlers expanded its pub estate by a series of acquisitions and mergers. The most notable was the merger in 1961 with Bass, Ratcliff and Gretton Ltd to form Bass, Mitchells & Butlers Ltd. In 1967 came another merger, with Charrington United. This resulted in the creation of Bass Charrington, subsequently shortened to Bass PLC. Bass, Mitchells & Butlers remained, however, the principal trading name within the Bass Group's UK business for many years.

The history of the Bass side of the business goes back to the eighteenth century. In 1777 William Bass, the owner of a carrying business between London and Manchester, established a brewery in Burton-on-Trent. During the nineteenth century, the company's beer became known throughout the world. The company's rapid growth and profitability were by-words in Victorian Britain. Michael Thomas Bass (1799-1884), the architect of its greatness, was very much the doyen of Victorian brewers.


Many years later, after the series of mergers (see above) in the mid-twentieth century, a major change to the company's structure followed the MMC Report on the Supply of Beer and the subsequent DTI Beer Orders in 1989. Bass PLC formed separate brewing and retailing divisions which replaced a number of vertically integrated (that is, running both breweries and pubs) regional companies. The brewing business was named Bass Brewers while Bass Taverns became responsible for all the managed pubs, bars and restaurants operated by the company.

Throughout the 1990s Bass Taverns changed its retail business to reflect the many changes in consumer demand. The Company recognised new niches within the market and created new concepts, as well as acquiring established brands. In September 1994, the first O'Neill's Irish bar opened in Aberdeen and in September 1995 Bass Taverns acquired the Harvester chain from Forte.

A new generation of pub-goer was emerging and brands such as All Bar One were developed, appealing especially to women. The first All Bar One opened in Sutton, Surrey in 1994. In January 1998 Bass Taverns also acquired the then seven-strong group of Browns Restaurants

Between December 1997 and August 1998, Bass disposed of its leased pub estate, bingo businesses, its chain of betting shops, the electronic leisure entertainment and gaming machine manufacturing interests.

In 1999, Bass Leisure Retail made its first acquisition in the continental market by purchasing Alex, an established brand of bars and brasseries, located largely in north west Germany. Later in 1999, in line with the company's growth plans, Bass acquired 550 pubs from Allied Domecq.

In January 2001, Bass was voted Best Retail Company of the Year at the Annual Retailers' Retailer awards. The sale of 988 pubs to Nomura for a total of £625 million in cash was announced in February 2001. This allowed the Company to increase its focus on larger suburban and city-centre pubs as well as expanding its branded estate. In 2002 Ember Inns, one of the company's newest brands, won the prestigious trade industry award of Retail Brand of the Year, presented by the Publican Magazine.

As Bass PLC built one of the world's largest hotel businesses in the 1990s and then sold its brewing business in 2000, Bass PLC was renamed Six Continents PLC. In October 2002 Six Continents announced the separation of the Hotels and Retail divisions. This has led to the rebirth of the Mitchells & Butlers name as a new independent force in pubs, bars and restaurants.

Today's Mitchells & Butlers runs many of Britain's leading licensed retail brands including Vintage Inns, Ember Inns, Toby Carvery, O'Neill's, All Bar One and Scream, as well as some of the most famous pubs in Britain. Its estate of over 2,000 sites consists of the pick of the former Bass and Allied Domecq estates, together with a number of individual and brand acquisitions.

We will continue to evolve and develop our pubs and restaurants to meet the needs and tastes of the British public thereby re-enforcing our position as one of the UK's leading managed pub operators.

[washbrook] 25/11/2003 22:40

Comments I found PRE DEMERGER SIX CONTINENTS[ex BASS]..
27.03.03 :+1, (622.5) news that it rejected a 2.8 bln stg offer for its Mitchells & Butlers retail pub estate. While the bid, believed to have come from private equity firm BC Partners, was rejected on price terms, analysts still believe an acceptable offer for M&B -- or the InterContinental Hotels division -- could still emerge before the demerger becomes effective on April 14. "The offer for M&B was far too low," said investment house Investec Securities this morning. "We think this business is worth at least 3.4 bln stg on a take-out basis," it added. Analysts reckon that M&B has an enterprise value of about 2.9-3.0 bln stg -- including 1.3 bln stg of debt. Any bidder would have to pay a control premium for M&B and take into account its proposed financial restructuring, which could release further funds for shareholders following the demerger. Investec reckons M&B could comfortably return about 250m -- or 30 pence a share -- to shareholders. It put SXC shares on its 'buy' list this morning. "This type of speculation will persist and underpins our view that the company is undervalued," it continued. Observers reckon that bidding for the two parts of the business -- Mitchells & Butlers PLC and InterContinental Hotels PLC -- will hot up after the demerger when they will be valued in their own right with separate stock market quotations. Investec reckons that on a relative basis the hotel assets are worth 400 pence a share -- based on 9.5 times EDITDA of 450m -- while the pubs could be worth 220 pence a share. Apart from the M&B pubs arm, bidders are also looking at SXC's InterContinental Hotels division. US hotel groups Starwood, Marriott International and venture capital firms Texas Pacific, Blackstone and CVC have all been mentioned as potential bidders. Today SXC announced it would be holding investor seminars in London and New York to discuss the outlook for its hotels business. Analysts are hoping the group will be able to give an update on how its hotels are faring and whether occupancies are suffering because of war in Iraq and the increased threat of terrorism.

[thesilentassassin] 25/11/2003 22:32

Lets hope buying pre results proves profitable

[washbrook] 25/11/2003 22:11

I picked the stock up yesterday too, on a limit placed which was hit .This stock is favoured by Undervalue Assetts IT in the Scottish Value Management stable.Highly regarded.
This is what they have to say in essence.:-

Mitchells & Butler is transforming, where even having missed buying Scottish & Newcastle's pub business, it has the potential to gear up and release value - either by buying other businesses or simply returning cash to shareholders. Mitchells & Butler has the potential to raise its shares to more like £3 than It could be a bid target.