UK pub operator Punch Taverns announced plans on Tuesday to sell off half of its nearly 6,000 leased pubs and split its business in two as part of a major strategic review launched in October last year.

The group, led by its new Chief Executive Ian Dyson, said the operation is part of an effort to 'maximise the long-term value within the estate by downsizing to a core of around 3,000 high-quality pubs'. As a result, the company will separate its Managed and Leased businesses in two independent public companies by the end of the summer.

'A demerger will provide the platform to enable both businesses to focus on the very different strategies required to deliver shareholder value, as well as providing choice and liquidity for investors,' said Dyson.

'We need a more radical approach, targeting a core estate of around 3,000 high-quality pubs over the next five years,' Dyson added.