The Restaurant Group PLC (LON:RTN) has managed to secure shareholder approval for its £550mln takeover of noodles chain Wagamama at a general meeting on Wednesday, although nearly 40% of those voting opposed the deal.
In a statement, the FTSE All-Share listed firm said 60.43% of the votes cast were in favour of the acquisition, while 60.06% voted to approve the group‘s £315mln discounted rights issue to fund the controversial buy.
The company, whose core brands are Garfunkels and Frankie & Benny’s, noted the percentage of votes cast against the Resolutions and said it “will continue to engage with investors to address their concerns.”
Debbie Hewitt, The Restaurant Group’s chairman said: "We have engaged extensively with investors throughout this transaction and very much appreciate the time all have given. 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.”
She added: “The acquisition of Wagamama creates a raft of new opportunities for us to capitalise on in the months and years ahead.”
In reaction to the news that the deal and cash call will go ahead, shares in The Restaurant Group dropped 12.7% to 205.20p in late morning trading.