British pub company Ei Group PLC has divested 370 of its properties to U.S. institutional investment management firm Davidson Kempner Capital Management for 348 million pounds ($443.7 million).
The $443.7 million figure is consistent with the net book value (NBV) and equivalent to 13 times earnings. Ei said that the divestment is consistent with its strategy of delivering attractive and sustainable returns to shareholders.
Ei Group will use part of the proceeds to repay debt as part of the Financial Times Stock Exchange 250 group’s aim to decrease its net debt or earnings before interest, taxes, depreciation, and amortization to six times.
The divestment will also allow Ei to pay a special dividend or add to the $25.6 million buyback programme which is currently underway.