The shareholders of The Restaurant Group (TRG), a British chain of restaurants and pubs, have approved the proposed acquisition by Apollo Global Management, a US-based private equity company.
The deal garnered approval from 93.5% of shareholders, leading to the company’s transition to a private entity.
In a statement, the group said, “In total, at the court meeting, 93.46% by value of scheme shareholders (as against a threshold of 75%) and 75.59% in number (as against a threshold of at least 50%) voted to approve the scheme. In total, at the general meeting, 93.53% by value of TRG shareholders (as against a threshold of 75%) voted to pass the special resolution to implement the scheme, including the amendment of TRG’s articles of association.”
The announcement of the transaction, valued at £506 million ($620 million), was made in October 2023.
Apollo committed to providing TRG stakeholders with a cash payment of 65 pence per share, representing a 34% premium over the stock’s closing price of 48 pence per share on October 11, 2023.
The anticipated closing date for the deal is December 21, 2023.
At the time of the deal’s announcement, TRG chairman Ken Hanna said, “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.”
As reported by Reuters, the agreement comes in the wake of financial instability at TRG, leading to demands for a change in leadership from both activist investors and shareholders.
It is reported that Apollo has been contemplating TRG for an extended period.
TRG’s portfolio includes brands such as Wagamama, the Brunning & Price pub chain and a concessions business. The company has more than 400 restaurant sites in the UK.
In September 2023, TRG agreed to sell its loss-making leisure unit to the Big Table Group.
The sale included restaurant brands Frankie & Benny’s and Chiquito. The business had 75 eateries after TRG closed 40 of its sites during 2023 following weak business.
