The venture capitalist 3i is to sell its stake in Wessex, the North-east based pub operator.
The company is thought to have appointed Price Waterhouse Coopers, the accountant, to find a buyer for the company, which is valued at £40m.
The sale means that 3i will be exiting the pub industry completely. It was revealed on thePublican.com two weeks ago that the company was to sell its stake in Hobgoblin Group, the pub operator and brewer. Hobgoblin comprises 27 pubs and the Wychwood Brewery.
Despite the market conditions and the dotcom crash, it is believed 3i will focus on the high-tech sector.
The sale of its stakes, which is expected to raise less than £10m, is part of a wider shake-up at 3i, which last month reported interim losses of £1bn and axed 185 jobs 17 per cent of its workforce.
No buyers for either businesses have been found yet.
One industry expert recently observed: "It's definitely a buyers' market and not a great time to sell."
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Hobgoblin seeks new backer (15 November 2001)