Columbia Threadneedle Investments, which owns 7.7% of TRG, have confirmed they are planning to oppose the proposal in a meeting on 28 November.
TRG conditionally agreed to purchase Mabel Topco, operating as Wagamama for a cash payment of £357m on 30 October. The company said its offer valued Wagamama at £559m. In November, TRG announced it would offer a discounted rights issue to fund the deal. This was criticised by analysts shareholders and analysts who said the deal was “overpriced”.
James Thorne, UK equities fund manager at Columbia Threadneedle Investments, said: “The strategic appeal of combining two good businesses may be understandable, but the size and price of the deal at this point in the cycle throws up too many red flags. The share price plunge reflects the depth of concern there is.”