London law firm HowardKennedyFsi has advised on an offer for subscription to raise a further GBP10m for The City Pub Company (East) and The City Pub Company (West) under the Enterprise Investment Scheme (EIS).
The companies were established in 2011, have already raised some GBP7.5m in aggregate under the EIS and now own a total of seven pubs located in affluent cities and market towns across Southern England.
As with the earlier funds raised, investors under the current share offer will be able to take advantage of the very generous EIS tax reliefs including a 30 per cent relief on the amount invested. A reduced subscription price of 105p will apply to valid applications received and accepted before 5pm on 15 March 2013.
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 fundraising is being supported by EIS promoter RAM Capital.
The chairman and chief executive officer of each of the companies, David Bruce and Clive Watson, founded The Capital Pub Company in December 2000. This Plc achieved for its original EIS shareholders a total return of GBP2.43 per GBP1 invested (excluding tax relief).
HowardKennedyFsi acted as legal advisers to the companies and the team was led by corporate partner Keith Lassman and solicitor William Bateman, who were assisted by partner Daniel Tunkel in relation to financial services and regulatory matters.
“We are pleased to have acted on yet another offer for subscription under the EIS,” says Lassman. “So far this tax year we have advised more than five funds and seven companies in relation to offers for subscription under this scheme. This particular investment promises to be successful with the backing of RAM Capital as the promoter. RAM has a strong record in promoting and marketing EIS products having raised approximately GBP320m over the last six years. We wish the companies every success in this project.”
