The Robert Tchenguiz-led R20 consortium has withdrawn its £2.8bn (€4.1bn), or 550p per share, cash offer for UK pub group Mitchells & Butlers.
The Tchenguiz group said it had decided not to pursue its offer to acquire the business, following the decision by the Mitchells & Butlers board not to back the offer announced on May 3.
Responding to the withdrawal statement, Mitchells & Butlers’ board said it believed the company had excellent prospects for organic growth and that it was well placed to take advantage of consolidation opportunities in the sector.
R20 said that it could make an offer within the next six months if the board of Mitchells & Butlers decided to recommend such an offer or if another bidder made a proposal.
Tchenguiz was seeking to combine Mitchells & Butlers with his own Laurel Pub, a plan expected to “unlock significant synergies”, according to an R20 letter posted on the pub company’s website.