Business

Electra plans TGI Fridays FTSE demerger

The announcement came as a part of the group’s results for the half year to 31 March 2021, where it also revealed that it intends to list Hotter Shoes on AIM

Electra Private Equity, the owner of TGI Fridays, has revealed that plans to list the restaurant chain on the FTSE Main Market in Q3 of this year are “well advanced”.

The announcement came as a part of the group’s results for the half year to 31 March 2021, where it also revealed that it intends to list Hotter Shoes on AIM.

During which, TGI Fridays saw pro forma EBITDA on recovery to 2019 levels of £32.7m, from £25.6m in FY19, with net debt increasing from £39m to £62m in the period.

The demerger decision follows a growth in Electra’s valuation of TGI Fridays from £106.6m in September 2020 to £146.2m in March 2021.

Neil Johnson, chairman at Electra, said: “The new management teams at our two remaining larger portfolio assets, Fridays and Hotter, have performed admirably through the pandemic, not just sustaining their businesses in the most difficult circumstances, but also transforming them. 

“In light of this, and their potential for further significant longer term value creation, the Board has decided that the optimal outcome for shareholders is likely to lie in a capital market solution for both businesses.”

He added: “It is our intention to demerge Fridays onto the FTSE Main Market late in the third quarter of this year and, subsequently, in the fourth quarter, to bring Hotter on to AIM through reclassification of the Electra entity.”

TGI Fridays’ entire 87-restaurant portfolio is now trading once again, with a “strong pipeline of new openings” planned for 2021.

The group claimed that like-for-like sales at TGI Fridays grew 76% when compared to 2019 across England and Wales for the first three days after reopening.

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