HowardKennedyFsi, has advised on an offer for subscription to raise a further GBP10m for The City Pub Company (East) PLC and The City Pub Company (West) PLC under the Enterprise Investment Scheme.
Prior to the offer, the companies had already raised some GBP13m under the EIS.
The offer, supported by EIS promoter RAM Capital, was fully subscribed in less than two weeks.
Lenny Norstrand, founder of RAM Capital, says: “In all my time as an EIS fundraiser, I have never seen a company close so quickly after launching their prospectus as City Pub Company has recently done.”
As with the earlier funds raised, investors under the offer will be able to take advantage of generous EIS tax reliefs, including a 30 per cent income tax rebate on amounts invested.
The companies, established in 2011, now own 13 pubs located in affluent cities and market towns in England. It is the intention of the companies to build on their portfolios of high quality pubs which can provide a long-term, sustainable income.
The chairman and joint chief executive officer of each of the companies, David Bruce and Clive Watson, founded The Capital Pub Company PLC in December 2000. This PLC was sold to Greene King for an enterprise value of GBP93m in July 2011 and achieved for its original EIS shareholders a total return of GBP2.43 per GBP1 invested (excluding tax relief).
HowardKennedyFsi has acted as legal advisers to the companies in relation to their three consecutive public offers under the EIS. Once again, the team was led by corporate partner Keith Lassman and solicitor William Bateman.
Bateman says: “It was a privilege to advise on what must be seen as the flagship offer in the EIS marketplace this season. HM Revenue & Customs recently announced that EIS backed funding doubled to over GBP1bn in the year to the end of March 2012 and the success The City Pub Companies’ fundraising suggests that such growth is set to continue.”
