Tchenguiz sells M&B stake

Property tycoon Robert Tchenguiz has sold his 25% stake in Mitchells & Butlers last night following the collapse of the Icelandic economy.

Tchenguiz was M&B's largest stakeholder and although he owned the shares, it is believed they were sold by Icelandic bank Kaupthing, which was holding the shares as collateral, according to the Financial Times​.

A total of 101m M&B shares were sold at 130p each before the close of trading yesterday.

Kaupthing was one of Tchenguiz's financial backers and called back the loan.

Tchenguiz retains a 4.8% stake in M&B through contracts for difference.

The sale would represents a complete turnaround for Tchenguiz after he attempted to first buy the company and then was recently successful in having two of his lieutenants appointed to the board.

Analyst Mark Brumby of Blue Oar Securities said: "Whilst all of the facts are as yet unclear, this looks like tremendous news. M&B should, depending upon who has bought the stake, once again be the master of its own destiny and should stick to what it does best — run pubs."

A statement is expected some time this morning. It is not known who the buyer of the shares is but the Times​ reports that it is British billionaire Joe Lewis, who also has investments in Ladbrokes and Tottenham Hotspur Football Club.

Lewis was born above the Roman Arms pub in Bow in the East End of London.

The MA will bring you more news as it emerges​.