Wagamama latest to go private in £700m Apollo deal
Wagamama owner The Restaurant Group is set to become the latest London-listed firm to go private after receiving a bumper bid from private equity giant Apollo.
The casual dining operator said the bid, which represents a 34 per cent premium on the firm’s closing price yesterday, would allow the business to move forward.
Apollo said in a statement this morning “Apollo has closely followed TRG over many years and believes that TRG is a high quality and leading company in the casual dining market with an attractive portfolio of concepts and brands.
“These are all characteristics which are highly valued by Apollo.”
The £701m bid which has been recommended by TRG’s board represented the third Apollo bid, with previous attempts not matching TRG’s valuation.
TRG recently offloaded its Frankie and Benny’s and Chiquito sites to the owner of Cafe Rouge, The Big Table Group.
The transaction will once again ignite fears that London markets are losing their lustre, with a host of businesses from small-cap to the very biggest players being picked off by private equity firms.
Apollo’s most recent raid on John Wood didn’t make it to completion, however, after Apollo pulled the plug.
TRG’s directors said in a statement this morning: “The TRG Board believes the certain value represented by the cash Acquisition is a superior outcome for TRG Shareholders compared to continuing to pursue the independent strategy of TRG.
“The TRG Board has confidence in the margin accretion plan over the next three years, but is cognisant of the premium, certain value of the Acquisition against the prevailing risk for all consumer-facing businesses with exposure to macro-economic uncertainties.”
More to follow