Electra Private Equity is to seek shareholder approval for a possible sale of its UK restaurant chain TGI Fridays. The move is part of a wider strategic review of the private equity firm’s business which could see its whole portfolio liquidated.
Electra has already disposed of its non-controlling stakes in PhotoBox and Knight Square and is now recommending shareholders back sales of both TGI Fridays and footwear chain Hotter Shoes.
Neil Johnson, Chairman of Electra Private Equity PLC, says: “The Board is pleased to announce agreement for the successful realisation of its larger non-controlled assets.
“Having carefully considered all options the Board now believes that given the size of the portfolio and the structural inefficiency of the listed private equity model that is accentuated by making new investments, it is now in shareholders’ best interests to announce the controlled realisation of the remaining portfolio over an appropriate period. The remaining assets have opportunity for value creation from current levels and the Board will actively work with portfolio company management to optimise realisations over time.
“The Board unanimously recommends that shareholders vote in favour of the proposed change in investment objective and policy, and if these are approved, will manage the Company’s cost base and size of the Board to a scale appropriate for the Company’s future needs.”
