The private equity firm, Apollo Global Management Inc. has agreed to acquire The Restaurant Group Plc, the firm behind popular dining experience, Wagamama. The deal, which is set to be worth £506 million ($623 million) arrives on the heels of widespread dissatisfaction from activist shareholders, who have raised concerns regarding the company’s strategy and declining share price.
The terms of the acquisition state that the investors will receive 65 pence per share in cash. According to the involved companies, this cash offer is 34% higher than the closing price of the stocks on the day prior to the announcement. This acquisition is being made through Apollo’s funds.
The Restaurant Group is not just Wagamama, but boasts more than 400 restaurants and pubs throughout the UK, including other notable chains such as Frankie & Benny’s, Chiquito, and Brunning & Price. Recently, the company also made headlines when it agreed to sell Frankie & Benny’s and Chiquito chains.
This report comes courtesy of a Bloomberg Law article penned by Thomas Mulier. The investment deal is set to change the landscape of the UK dining industry, and it’s clear that all eyes will be on Apollo Global Management and The Restaurant Group as further details emerge.