Punch Taverns disposes of Matthew Clark stake

(Reuters) - Punch Taverns Plc (PUB.L) said it would sell its 50 percent stake in UK-based drinks wholesaler Matthew Clark to Conviviality Brands for 100.7 million pounds ($154.50 million) in cash.

Matthew Clark is a 50/50 joint venture between Punch Taverns and Hertford Cellars Ltd, a unit of Accolade Wines.

"The sale of a non-core business will enhance our financial flexibility to pursue our strategic objectives for our core activities," Punch Taverns Chief Executive Duncan Garrood said.

British pub owners, hit by a lawmakers' move to hand publicans more control over where they buy beer, are responding by cutting support for tenants, selling off some pubs and switching others to a group managed format.

Punch Taverns said the sale, expected to be completed on or around Oct. 2, would result in net cash proceeds of about 98.7 million pounds.

Punch Taverns, which owns over 3,500 pubs across the UK, said it will enter into a 10-year drinks-supply agreement with Matthew Clark for the supply of wines and spirits to its estate.

Shares in the company rose 5.74 percent to 129 pence on the London Stock Exchange on Tuesday.

(Reporting by Aastha Agnihotri in Bengaluru; Editing by Anupama Dwivedi)