Investor slams The Restaurant Group's £506m price tag

Investor slams The Restaurant Group’s £506m price tag

Updated: 21:51 BST, 14 October 2023

An activist investor has slammed the price of the buyout deal for The Restaurant Group (TRG), claiming it undervalues the Wagamama-owner by around £100 million.

American private equity giant Apollo has agreed to take the group private for £506 million, or 65p per share.

TRG’s bosses have backed the deal, claiming they rebuffed an earlier lower bid.

But TMR Capital, which has campaigned for months for the company to sell all its brands apart from noodle chain Wagamama, believes TRG is worth at least 80p per share.

This would value it at more than £600 million.

Pressure: TMR Capital has campaigned for months for the company to sell all its brands apart from noodle chain Wagamama

TMR also told The Mail on Sunday that it alerted Apollo to The Restaurant Group as a good bid target.

The Restaurant Group in September announced it would sell the Frankie and Benny’s and Chiquito’s restaurant chains to the owner of Café Rouge.

Readers Also Like: Facebook scammers are using ULEZ to exploit drivers: How fraudsters are posting fake ads for cut-price luxury cars that will avoid £12.50 eco charge

Apollo was contacted for comment.

Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.

READ SOURCE