Wagamama takeover gets the go-ahead
The Restaurant Group has clinched approval for its controversial takeover of the Wagamama chain, despite a significant level of opposition from shareholders.
The full results showed just under 61 per cent of shareholders supported the £559m deal, which will be paid for through a combination of a £315m rights issue and a £220m revolving credit facility.
With almost two fifths of voters opposing the deal, The Restaurant Group said it would engage with investors to address their concerns.
Chairman Debbie Hewitt said: “The acquisition of Wagamama creates a raft of new opportunities for us to capitalise on in the months and years ahead. We look forward to welcoming the Wagamama team into the business post-completion and thank them alongside all of our Restaurant Group colleagues for keeping focused on delivering for our customers.”
Major Restaurant Group investors including Columbia Threadneedle and US activists GrizzlyRock Capital and Vivaldi Asset Management have publicly voiced opposition to the acquisition in recent weeks, saying it had “red flags”.