Fri 29th Jan 2021 - Marston’s receives unsolicited offer Marston’s receives unsolicited offer: Marston’s has confirmed it has received an unsolicited offer for the company. It follows speculation that an offer had been received after the company’s share price shot up by 25% at one point on Friday morning (29 January). The company stated: “The board of Marston’s notes the press speculation and confirms it has today received an unsolicited non-binding proposal from Platinum Equity Advisors regarding a possible cash offer for the entire issued, and to be issued, share capital of Marston’s. The board will evaluate the proposal with its advisers and a further announcement will be made in due course. There can be no certainty that any firm offer will be made for the company, nor as to the terms on which any firm offer might be made. In accordance with rule 2.6(a) of the code, Platinum, is required, by no later than 5pm on Friday, 26 February, being 28 days after today’s date, to either announce a firm intention to make an offer for the company in accordance with rule 2.7 of the code or announce it does not intend to make an offer, in which case, the announcement will be treated as a statement to which rule 2.8 of the code applies. This deadline can be extended with the consent of the takeover panel in accordance with rule 2.6(c) of the code.” Last month, Marston’s exchanged on a deal to take over the operation of Welsh brewer and retailer SA Brain’s 156-strong pub estate. The deal will see the Ralph Findlay-led Marston’s operate 141 freehold pubs on a leasehold basis, with effect from February 2021, with rent chargeable from 1 April 2021. The majority of these will be on long lease agreements of 25 years. The outlet level Ebitda on a pre-covid basis is £14m and annual rent of £5.5m will be charged from April 2021. In addition, Marston’s will operate the remaining 15 short leasehold sites on a management contract basis for a period of two years. The circa 1,300 people currently employed in the pub business will transfer across to Marston’s and an initial incremental central overhead of up to £2m will be required to operate the additional pubs. The Brain’s pub business comprises a freehold estate of 86 managed and 55 tenanted pubs, together with a leasehold estate of 15 managed pubs and bars. Marston’s currently operates 106 pubs in Wales. Marston’s chief executive Ralph Findlay will be feature in the latest Propel Premium “lessons of lockdown” video, which subscribers will be access from 5pm today. The interview was recorded before today’s announcement. Propel Premium subscribers also receive their morning newsletter 11 hours early, at 7pm the evening before our 6am send-out, discounts to attend Propel conferences and events, and regular columns from Mark Wingett. Subscribers also receive access to our database of multi-site companies, which has grown to 1,600 businesses. An annual premium subscription costs £395 plus VAT for operators and £495 plus VAT for suppliers. Email anne.steele@propelinfo.com