PizzaExpress considers rival bid to buy the Restaurant Group

Wagamama owner the Restaurant Group (TRG) has confirmed it has been approached by the owner of PizzaExpress over a possible rival bid to buy the business.

TRG said Wheel Topco, an entity behind PizzaExpress, had requested diligence information to allow it to consider an offer for the company.

The move could signal the start of a potential bidding war for TRG, which this month agreed to be bought by Apollo Global Management for over £500m.

Sky News, which first reported the approach, said other potential counterbidders were considering whether to make offers.

No formal offer has been made by Wheel Topco and the process is still at an early stage.

“There can be no certainty that an offer by Wheel Topco will be made for the company, nor as to the terms on which an offer might be made,” TRG said in a statement.

“If any proposal is provided by Wheel Topco, the board of TRG will carefully consider its terms, in conjunction with its advisers.”

Analysts were divided over Apollo’s 65p a share offer to buy TRG, and some warned it was too low and likely to flush out another bid for the business.

Although the approach was made by Wheel Topco, PizzaExpress has been controlled by a group of debt funds including Bain Capital and Cyrus Capital Partners since 2020.

The management team at PizzaExpress has a history with TRG, as chairman Allan Leighton previously chaired Wagamama and was involved in its sale to TRG in 2018.

TRG runs more than 400 UK sites including the Brunning & Price pub chain and a concessions business.

Last month, TRG announced it would pay rival casual dining business Big Table Group £7.5m to take its struggling leisure arm, including the Chiquito's and Frankie & Benny's brands, off its hands.

It has made no formal change to its advice that shareholders vote in favour of Apollo’s offer to buy the business.

PizzaExpress declined to comment.