Enterprise Inns has refinanced its debt following its proposed acquisition of 439 pubs from Morgan Grenfell Private Equity, giving the UK pub operator a further £262.5m (€431.3m) to finance another buy-out in the future.

Sources close to the company said Enterprise had joined hands with Noble House Leisure, the leisure group run by Robert Breare, to bid for some 650 pubs managed by Scottish & Newcastle. A deal, which Enterprise would finance with its additional debt facility, will be announced imminently, sources said.