Restaurant Group to be taken over by PE firm Apollo in £701m deal

(Sharecast News) - Wagamama and Frankie and Benny's owner The Restaurant Group said on Thursday that it has agreed to be taken over by private equity firm Apollo in a £701m deal. Under the terms of the deal, TRG shareholders will receive 65p in cash per share, which is a premium of around 34% to the closing share price on Wednesday.

TRG chair Ken Hanna said: "TRG operates a diverse portfolio of some of the UK's leading hospitality brands. As a result of ongoing positive management actions and the margin accretion plan we announced in March this year, the group has recovered well from the challenges of the pandemic and the cost of living crisis.

"This is evidenced by the continued strength of our trading performance versus the broader hospitality sector and the share price increasing 55% this year. In addition, the TRG board and management of TRG have reviewed in detail the strategic options available to the group, resulting in the announcement of the proposed sale of the leisure business.

"The TRG board continues to have confidence in the plan, but is cognisant of the premium and the certain value of the Apollo offer against the backdrop of a challenging macro-economic environment. As such, the TRG directors intend to unanimously recommend the offer to TRG shareholders."