US private equity major Apollo Global Management (AGM) has agreed to pay £506m in a take-private deal for The Restaurant Group (TRG), owner of casual dining chain Wagamama’s and the Brunning & Price group of pubs for £506m.
Under the terms of the deal, which comes after a year of financial struggles for the business and campaigns by activist investors including Irenic and Oasis, Apollo will pay TRG shareholders 65 pence in cash for each share held, a premium of about 34% to the stock’s last closing price.
The company’s shares, which jumped 37.1% to 66.5 pence in early trade on news of the deal, are up nearly 55% this year.
TRG’s board has unanimously recommended that shareholders vote in favour of the deal, which has an enterprise value of £701m and is expected to close early next year.
