TMR Capital sees offer for Restaurant Group’s Frankie & Benny’s division
Activist investor TMR Capital is reportedly considering an offer for a group of hospitality brands, including Frankie & Benny’s, owned by The Restaurant Group.
TMR, which has a 1.75 percent stake in TRG, has been pushing for a breakup that would allow the chain to speed up expansion of its flagship Wagamama brand.
It is now considering a bid for TRG’s ‘leisure’ division, which includes Frankie & Benny’s and Chiquito, as well as its Brunning & Price pub operation, The Sunday Telegraph reported.
Together the two divisions operate over 100 sites in the UK.
A price has reportedly not been discussed, but analysts suggested a ‘knockout’ offer would be around £200m.
Tasty: TMR is considering a bid for TRG’s ‘leisure’ division, which includes Frankie & Benny’s (pictured) and Chiquito
A sale would leave TRG with only Wagamama, the Asian-themed chain it bought in 2018, and the pubs it operates in airports and train stations.
TRG would not comment on the possible offer, but said it would continue to review “broader strategic options.”
The group is in the process of closing 35 sites in its leisure division, which is underperforming other parts of the business.
A trade update last week showed first-half sales in that part of TRG fell 4 percent, while Wagamama saw 5 percent growth.