- Wheel Topco blames “market conditions” for not having submitted an offer for the group
Wheel Topco, owner of Pizza Express, has confirmed it will not make a bid for The Restaurant Group “due to market conditions”.
TRG said last month it had received a due diligence request from Wheel Topco, which was considering a possible surprise bid for the group. However, no offer was formally submitted.
The restaurant group shares fell on Tuesday and was down 3.32 per cent or 2.20p at 64.10p in early morning trading.
No deal: Wheel Topco, the owner of Pizza Express, has confirmed it will not make a bid for The Restaurant Group
Before last month’s offer, TRG said it had agreed to be acquired by private equity firm Apollo in a £701 million deal.
Under the terms of that deal, shareholders would receive 65 pence in cash per share.
Last month, Apollo said: ‘Apollo has followed TRG closely for many years and believes TRG is a leading, high-quality company in the casual dining market with an attractive portfolio of concepts and brands.
“These are all characteristics that Apollo values highly.”
TRG told investors that the offering would provide a “superior outcome for TRG shareholders compared to continuing with TRG’s standalone strategy.”
It said: ‘TRG Board is confident in the margin growth plan over the next three years but is aware of the premium, the determined value of the Acquisition versus the prevailing risk for all consumer-facing businesses with exposure to uncertainties macroeconomics. ‘
The hospitality sector has been struggling with higher costs and staff shortages at a time when many consumers have been looking to adjust their finances amid rising inflation.