London Town group’s shareholders have approved the purchase of 167 pubs from entrepreneur Jack Petchy in a £94.57m deal.
The Alternative Investment Market listed group, which is currently searching for a chief executive, has borrowed £72.82m from Anglo Irish Bank to fund the transaction.
In the eight months to 31 August the 167-strong pub portfolio had annualised income of around £6.5m.
London Town plans to run all the leased and tenanted sites in the portfolio as going concerns initially, but will look to convert 62 of the pubs to alternative use when opportunities arise.
The pubs will continue to be run by County Estate Management.
Petchy gains a 22.2% share in London Town as part of the deal through Incorporated Holdings, which is a parent company of seller Petchy Holdings.
By Chris Druce
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