Sale of Pub Portfolio to Heineken N.V.

RNS Number : 2427T

Royal Bank of Scotland Group PLC

02 December 2011

 



THE ROYAL BANK OF SCOTLAND GROUP PLC - SALE OF PUB PORTFOLIO TO HEINEKEN N.V.

The Royal Bank of Scotland Group plc ("RBS") today announces the sale of its tenanted pub business to Scottish & Newcastle Pub Company (Management) Limited ("S&NPC"), a subsidiary of Heineken N.V.

The business, which comprises 918 pubs across the UK, has been operated since 1999 by S&NPC under a management agreement.

As a result of the sale, RBS received cash proceeds of approximately £422 million including approximately £10 million of accrued earnings owed to RBS pursuant to the management agreement, which has been terminated with immediate effect.

In the year ended 31 December 2010, EBITDA generated under the terms of the management agreement was £45 million. As at 31 December 2010, the business' combined gross asset value was £406 million.

This sale is in line with the asset reduction element of RBS' Non-Core strategic plan. The proceeds received will reduce further the overall funded assets in Non-Core. As at 30 September 2011, RBS had reduced its Non-Core assets to £105 billion since the Non-Core Division's inception in 2009.

RBS Corporate Finance and Sapient Corporate Finance advised RBS on the transaction.

RBS Investor Relations

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RBS Media Relations

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