LONDON (dpa-AFX) - Mitchells & Butlers Plc. (MAB.L, MLB) said Wednesday that its wholly-owned subsidiary, Mitchells & Butlers Retail, has reached agreement with James Horler (CEO) and the other shareholders of 3Sixty Restaurants Limited to vary certain of the arrangements relating to their joint venture for the development of the Ego Restaurants business.
The Ego Business operates 23 Mediterranean-style family restaurants across the UK.
In August 2018, Mitchells & Butlers Retail acquired a 40% stake in 3Sixty from an exiting shareholder for initial cash consideration of about 4 million pounds. Mitchells & Butlers Retail had also entered into a joint venture agreement with the other 3Sixty shareholders or the Majority Shareholders for the development of the Ego Business.
As per the certain put and call option arrangements, Mitchells & Butlers Retail could acquire the remaining 60% interest in 3Sixty from the Majority Shareholders in August 2021.
It was agreed that it was in the interests of all parties for the joint venture arrangements to continue for a further period. Therefore, on 22 January 2021 Mitchells & Butlers Retail and the Majority Shareholders agreed to an extension of the joint venture arrangements and the variation of the option arrangements such that the options shall become exercisable on or after 1 April 2023.
The maximum amount payable by Mitchells & Butlers Retail for the Majority Shares will be capped at 40 million pounds.
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