Updates

Restaurant Group - Bid from Apollo backed funds

November 2023

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Restaurant Group has agreed an all cash bid from Rock Bidco (owned by Apollo Funds). The offer of 65p per share values RTN ordinary shares at c.£506m with an enterprise value of £701m. The acquisition price represents a 34% premium to the share price the night before and values the business on 6.8x FY24E EV/EBITDA on Jefferies’ estimates. Activist investors Oasis (17.8%) and Irenic Capital (1.9%) have voted in favour of the acquisition, which requires approval of 75% of the shareholders. But this isn’t the only bidder in town. A few days later, Restaurant Group revealed that an approach for the business has been made by Wheel Topco, the owner of PizzaExpress, which could signal a bidding war. The price has risen over ...

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The Restaurant Group (January 2019)

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