Shares in Wagamama-owner The Restaurant Group PLC soared 37% after the company agreed a bid from Apollo Global Management valuing the business at £506 million.
The all-cash bid is worth 65p per share, implying an enterprise value of £701 million and a multiple of around 9.0 times TRG's adjusted EBITDA for the 12 months ended 2 July 2023.
Apollo said it has closely followed TRG over many years and believes it is a high quality and leading company with an attractive portfolio of concepts and brands.
TRG said despite recent improvements it has become clear that there are divergent and opposing shareholder views on its future portfolio shape, and timing and pathway to achieving it.
The firm has faced criticism from activist shareholders who have pushed for a shake-up or partial sale of TRG’s restaurant assets.
Ken Hanna, TRG’s chair, said the board is “cognisant of the premium and the certain value of the Apollo offer against the backdrop of a challenging macroeconomic environment” and it plans to “unanimously recommend” the offer to shareholders.