The Restaurant Group's takeover of Wagamama is approved by shareholders
The Restaurant Group has secured shareholder approval for its GBP£550mn (USD$702.3mn) takeover of pan-Asian food chain Wagamama.
The Restaurant Group agreed to buy Wagamama from private equity groups Duke Street and Hutton Collins last month for an enterprise value of GBP£550mn (USD$702.3mn), including a GBP£357mn (USD$455.9mn) cash payment.
The takeover will be funded from a deeply funded GBP£315mn (USD$402.1mn) rights issue.
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The company behind restaurants brands such as Frankie & Benny’s and Chiquito said it had secured enough support to buy the Wagamama chain.
Fourth-fifths of the share capital voted, supporting the deal by a margin of 60.4% to 39.6%.
Big-name shareholders said they opposed the deal due to concerns about the price of the acquisition and the debt levels for the Restaurant Group.
Speaking of the result, Debbie Hewitt MBE, Chairman of The Restaurant Group, said: "We are pleased that the majority of our shareholders have approved the acquisition and the associated rights issue, and we would like to thank them for the support they have shown.
“We are confident that the deal will create significant long-term value.
“The acquisition of Wagamama creates a raft of new opportunities for us to capitalise on in the months and years ahead.”
Wagamama has 130 restaurants in the UK, six in the US, as well as over 50 other franchises around the world.
The deal represents the highest per-restaurant price ever paid in the UK, according to Langton Capital.