Punch Taverns PLC is pleased to announce the sale of 869 leased and tenanted pubs to Admiral Taverns for a total consideration of £326 million.  The pubs sold are principally situated in England and Wales.  

The consideration will be satisfied by £322.5 million in cash and £3.5 million in preference shares.  Cash proceeds from the sale will be used initially to reduce net debt. 

For the financial year ended 19 August 2006, the pubs being disposed of generated EBITDA of £30.1 million.  As at 3 March 2007, the pubs had a book value of £321 million.
   
The sale is expected to complete in mid May. 

Commenting on the transaction, Giles Thorley, Chief Executive of Punch Taverns, said:
“This is an excellent transaction for Punch and in line with our strategy of continuously improving our high quality pub portfolio.  We constantly seek opportunities to maximise shareholder value and this disposal represents a strategic sale of non-core pubs which do not fit our aspirations for business growth as we continue to build the UK’s premier pubco.” 

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