Property tycoon Robert Tchenguiz must unwind a complex £1.8bn securitisation in order to move forward with the proposed £2.4bn acquisition of pub chain Mitchells and Butler (M&B).

Undoing the securitisation would effectively split M&B’s property assets from their operating company and force Tchenguiz to pay bondholders £260m or 575p per share – an increase of 50p per share.

The securitisation originally took place in 2003, following M&B’s demerger from Six Continents.

Tchenguiz’s consortium in the proposed bid for M&B – including Apax, Goldman Sachs, Barclays and HBOS – is being advised by Goldman Sachs, while Citigroup is advising M&B. None of the companies involved in the deal has released comments.

Tchenguiz owns 418 managed and 450 tenanted pubs.