W&DB confident in sale of Pitcher & Piano

The sale of the Pitcher & Piano bar chain is not in jeopardy according to parent company Wolverhampton & Dudley Breweries...

The sale of the Pitcher & Piano bar chain is not in jeopardy according to parent company Wolverhampton & Dudley Breweries (W&DB).

Following increasing speculation that hopes of a disposal were fading, a spokesman for the company told thePublican.com: "We have several companies interested at the £60-70m asking price. We are confident of a sale and as far as we are concerned it is very much business as usual."

Part of W&DB's successful defence against Pubmaster's £513m hostile takeover was the promise that it would return some £200m to shareholders.

Of that figure, £100m was to be generated from disposals. It has already raised £50m and the sale of the Pitcher & Piano chain would easily take it past the £100m target. But W&DB was quick to point out it does not need to sell.

A spokesman added: "We are not a forced seller, we do not need to sell Pitcher & Piano in order to raise cash."

When the chain was first put up for sale the company said it expected to raise £70m-75m from the sale. This figure was then revised down to £60-70m.

Regent Inns, owner of Walkabout and Jongleurs, offered £62m in cash but this was rejected. SFI Group did show interest but only if the price dropped to £55m.

Barracuda was also said to have thrown its name into the hat.

A number of groups are still interested, according to W&DB, including several venture capital-backed parties.

Related news:

Regent to drop bid for £65m bar chain (5 September 2001)