Unlock the Editor’s Digest without cost
US buyout group Apollo International Administration has agreed to purchase Wagamama proprietor The Restaurant Group for £506mn.
Below the phrases of the deal introduced on Thursday, Apollo pays 65p a share in money for TRG, which additionally owns the Brunning & Value pub chain.
The take-private deal follows a rolling activist marketing campaign on the informal eating operator by which shareholders, together with Hong Kong-based fund Oasis Administration, have pushed for a shake-up or sale of TRG’s restaurant property.
Apollo stated it had obtained an “irrevocable enterprise” from Oasis and New York-based Irenic Capital, the 2 largest activist shareholders which collectively personal practically a fifth of the inventory, to vote in favour of the deal.
The acquisition implies an enterprise worth of £701mn for TRG.
Ken Hanna, TRG’s outgoing chair, stated the board was “cognisant of the premium and the sure worth of the Apollo supply towards the backdrop of a difficult macroeconomic setting” and it deliberate to “unanimously advocate” the supply to shareholders.
The deal, which is anticipated to finish in early 2024, will want 75 per cent shareholder approval to proceed.