As many as 290 million new shares are set to be issued in a ‘13 for nine’ rights issue priced at 108.5p. Current shareholders and analysts have already criticised the £559m deal claiming that it is overpriced. When news of the planned acquisition emerged Restaurant Group shares tanked by 10% to 251.8p.
On Monday, it claimed that trading at Wagamama had been robust, with like-for-life sales rising by 12% in the 11 weeks to 4 November compared with the same period last year.
Restaurant Group CEO Andy McCue, defended the deal when he said: “This a transformative deal which accelerates our growth strategy and adds a differentiated, high growth brand to our portfolio.
“The transaction benefits both businesses, creating an enlarged group that has scale benefits and will create significant value for our shareholders, underpinned by £22m of quantified cost and revenue synergies. We look forward to welcoming the Wagamama team into the Restaurant Group.”