Hong Kong hedge fund buys stake in Wagamama owner

ACTIVIST investment fund Oasis has bought a stake in Wagamama and Frankie & Benny’s owner The Restaurant Group.

The Hong Kong-based hedge fund is best known in the UK for buying nearly a fifth of the shares of Mr Kipling and Oxo owner Premier Foods and attempting to oust its then chief executive Gavin Darby.

Company filings from late November reveal Oasis has bought 5pc of the shares of The Restaurant Group, which also owns chains Chiquito, Firejack and pub group Brunning & Price.

The Restaurant Group was founded in 1987 and operates more than 400 restaurants in the UK. It bought Wagamama in 2018 in a deal worth £559m.

It was hit badly by the pandemic and forced to close more than 100 sites in 2020. However its sales recovered quickly as diners returned to its venues.

Its sales almost doubled last year but its share price plunged by 63pc.

Singer Capital Markets analysts said: “Restaurant Group has a good portfolio of brands exposed to fast-growing segments of the eating-out market. We do expect it to outperform the sector.”