Royal Bank of Scotland (RBS) is to sell its tenanted pub business of 918 pubs to the Scottish and Newcastle Pub Company (S&NPC) for £418m.
The business has been operated since 1999 by S&NPC under a management agreement. S&NPC is a subsidiary of Dutch brewer Heineken.
In the year ended 31 December 2010, earnings before interest, tax, depreciation and amortisation generated under the terms of the management agreement was £45m. As at 31 December 2010, the business's combined gross asset value was £406m.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The sale is part of RBS's strategy of selling its non-core assets to pay off UK tax payers who ended up owning over 80% of the bank following the financial crisis of 2008.
BS
-
Pension tax-free lump sum warning as early withdrawal could cost savers £63,000Savers could also be hit with income tax on money added to cash savings accounts
-
Reeves told scrapping pension salary sacrifice would cost average earner £377 a yearMPs – including chancellor Rachel Reeves – have received a letter warning of the dangers in reducing or removing salary sacrifice schemes for pension contributions, a plan under consideration by HMRC.
