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Sept 8 (Reuters) - Punch Taverns Plc said it wouldsell its 50 percent stake in UK-based drinks wholesaler MatthewClark to Conviviality Brands for 100.7 million pounds ($154.50million) in cash.
Matthew Clark is a 50/50 joint venture between Punch Tavernsand Hertford Cellars Ltd, a unit of Accolade Wines.
"The sale of a non-core business will enhance our financialflexibility to pursue our strategic objectives for our coreactivities," Punch Taverns Chief Executive Duncan Garrood said.
British pub owners, hit by a lawmakers' move to handpublicans more control over where they buy beer, are respondingby cutting support for tenants, selling off some pubs andswitching others to a group managed format.
Punch Taverns said the sale, expected to be completed on oraround Oct. 2, would result in net cash proceeds of about 98.7million pounds.
Punch Taverns, which owns over 3,500 pubs across the UK,said it will enter into a 10-year drinks-supply agreement withMatthew Clark for the supply of wines and spirits to its estate.
Shares in the company rose 5.74 percent to 129 pence on theLondon Stock Exchange on Tuesday.
($1 = 0.6518 pounds) (Reporting by Aastha Agnihotri in Bengaluru; Editing by AnupamaDwivedi)