Pizza Express works up urge for food to swallow Wagamama proprietor

Pizza Express is contemplating a shock transfer to gatecrash a takeover of The Restaurant Group (TRG), the London-listed firm which owns Wagamama.

Sky News has learnt that Pizza Express is on the preliminary levels of evaluating whether or not to make a rival provide for TRG, which this month agreed to be purchased by Apollo Global Management for simply over £500m.

City sources cautioned on Wednesday that there was no assure Pizza Express would proceed with a proper provide to TRG’s board, chaired by Ken Hanna.

One of the sources stated there had solely been preliminary contact between the 2 sides thus far, and that the general public disclosure of its curiosity may immediate it to stroll away.

Other potential counterbidders are additionally stated to be inspecting whether or not to make provides.

Pizza Express is managed by a bunch of debt funds together with Bain Capital Credit and Cyrus Capital Partners, which took possession in 2020.

Prior to that, the UK’s greatest chain of pizza eating places was owned by China’s Hony Capital.

Although it has not been rumoured as a possible counterbidder for TRG, which additionally owns the Brunning & Price pub chain, analysts imagine there may be logic in its curiosity.

One stated on Wednesday that there could be substantial value synergies generated by bringing the 2 chains beneath a single holding firm.

Allan Leighton, Pizza Express’s chairman and one in every of Britain’s most prolific businessmen, beforehand chaired Wagamama and engineered its sale to TRG in 2018.

He then spent a quick interval on TRG’s board.

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Under the phrases of Apollo’s 65p-a-share provide, a rival bid would have to be at the least 10% richer for irrevocable shareholder undertakings to lapse.

Oasis Management, an activist hedge fund which had pressed for boardroom and strategic modifications at TRG for months, has stated it should vote its near-18% in favour of the deal.

It was unclear at what value Pizza Express is likely to be considering bidding, or how it will finance a proposal.

On Wednesday, TRG shares closed at 66.5p, above the extent of the Apollo bid, implying the market believes a counterbid is probably going.

Last month, TRG introduced the sale of Chiquito’s and Frankie and Benny’s, two of Britain’s best-known informal eating chains, to The Big Table, one other restaurant operator.

That deal noticed The Big Table, which is backed by the buyout agency Epiris, including the 2 manufacturers to a portfolio which incorporates Amalfi, Banana Tree, Bella Italia, Cafe Rouge and Las Iguanas.

The announcement got here simply days after TRG introduced that Mr Hanna would step down.

It is unclear whether or not Andy Hornby, TRG’s chief government, would stay in place beneath Apollo’s possession.

Pizza Express and TRG each declined to remark.