City Pub Group PLC (The) Acquisition and increase in Mosaic Shareholding (9756W)
April 29 2021 - 1:00AM
UK Regulatory
TIDMCPC
RNS Number : 9756W
City Pub Group PLC (The)
29 April 2021
City Pub Group PLC
("City Pub Group" or the "Company")
Acquisition of 49% stake in Kensington Park Hotel
and
Increase in shareholding to 24% in Mosaic Pub and Dining
Kensington Park Hotel
The City Pub Group is pleased to announce that it has acquired a
49% stake in Barts Pub Ltd, owner of the iconic Kensington Park
Hotel ("KPH") in Ladbroke Grove, for GBP0.75m.
The KPH is a leasehold pub located 200 metres from Ladbroke
Grove tube station. It has large trading areas on the ground and
first floors, benefits from seven hotel letting rooms and has
potential for a further four letting rooms on the top floor.
Ladbroke Grove is a prime residential area in London and the
Company trades very successfully at the Cock & Bottle, Notting
Hill, which is located close by.
The City Pub Group will operate the pub under a management
contract and has an option to buy the freehold for GBP5.5m up until
March 2024.
Mosaic Pub and Dining Group
The Company is also pleased to announce that it has increased
its stake to 24% in certain companies within the Mosaic Pub and
Dining Group, through the acquisition of existing shares in The
Galaxy (City) Pub Company Limited, The Pioneer (City) Pub Company
Limited and The Sovereign (City) Pub Company Limited (the "Mosaic
Companies") for a total cash consideration of approximately
GBP1.18m. The Company acquired a 14% stake in the Mosaic Companies
in September 2020 and this transaction takes its total investment
to GBP2.42m.
The Mosaic Companies own nine prominent pubs, predominantly in
London and Birmingham, of which 7 are freehold. Mosaic has a strong
balance sheet with over GBP3m in cash deposits and a very strong
freehold asset-backing.
The City Pub Group and Mosaic jointly negotiate their major
liquor supply deals (draught beer, spirits, wines, soft drinks) and
the Company's investment will help to cement this relationship. It
is the intention of both the Company and Mosaic to assist each
other in advancements in technology, especially in areas such as
the City Club app.
Clive Watson is an investment consultant to Mosaic. Richard
Prickett, Non-Executive Director of the City Pub Group, is a
Non-Executive Director of The Pioneer (City) Pub Company
Limited.
Clive Watson, Executive Chairman of the City Pub Group,
commented:
"These two corporate transactions demonstrate that the Company
can provide liquidity for shareholders in EIS companies on a staged
basis, with the aim of significantly increasing the size of the our
portfolio over the next 2-3 years. We will continue to look at
selective, high quality single pub acquisitions as well as larger
estates."
29 April 2021
About KPH
Established 155 years ago, KPH has a colourful history. Most
recently it was only kept as a pub following a campaign by Eddie
Izzard and Cerys Matthews, the welsh singer.
It was the venue for Tom Jones's first gig in 1960 and hosted
the Clash and Paul Weller of The Jam fame. Regular visitors
included Oswald Mosely, the fascist leader, Thin Lizzy's Phil
Lynott and Timothy Evans, who was wrongly hanged in 1950 for the
murders of serial killer John Christie.
In 2014, KPH was declared an "asset of community value" by
Kensington Borough Council.
Enquiries:
City Pub Group
Clive Watson, Chairman
Tarquin Williams, CFO
Instinctif Partners
Matthew Smallwood
Jack Devoy +44 (0) 20 7457 2020
Liberum (Nomad & Broker)
Chris Clarke
Edward Thomas
Clayton Bush +44 (0) 20 3100 2000
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