Alchemy Partners, a UK buy-out firm, is hoping to raise £350m (€515.2m) from the sale of its 1,070-strong InnSpired UK pubs holding. Punch Taverns is understood to be the frontrunner for the business.

The sealing of a deal will bring to an end more than a year of negotiations with other trade and private equity firms as well as investment banks who were seeking an initial public offering or accelerated flotation, according to sources close to the talks.