Deal Reached
Wagamama's owner, The Restaurant Group (TRG), has agreed to a £701 million takeover bid from US private equity firm Apollo. The deal marks the end of a year-long battle with activist investors.
Previous Attempts
Apollo had previously made three unsuccessful bids to acquire TRG, losing out on deals with Asda and Morrisons. However, the firm's offer of 65p per share was accepted by TRG's board.
Support from Activist Investors
The takeover has gained the support of activist investors Oasis and Irenic Capital, who stand to make significant profits from their stake in TRG. Both investors bought in when TRG shares were trading at just 40p during the cost-of-living crisis.
Shareholder Backing
Analysts at Stifel have reported that the top six shareholders, accounting for approximately 20% of the company, are in favor of the deal. This suggests a high likelihood of the takeover being completed.
CEO to Stay On
TRG CEO Andy Hornby, the former boss of HBOS, will continue to lead the restaurant business after the takeover. However, he was not involved in the negotiations with Apollo due to his previous career at a gambling firm owned by the private equity firm.
Private Equity Interest
Despite concerns about weaker consumer spending, private equity firms continue to show interest in the leisure industry. Recent examples include Roark Capital's acquisition of Subway and the sale of Italy's Big Mamma Group to McWin.
