Shareholders approve sale of the Restaurant Group

Shareholders of the Restaurant Group (TRG) have approved its sale to private equity giant Apollo Global Management for £506m.

The casual dining group said 93.5% of shareholders had approved the plan, which will take the company private.

Apollo had offered to pay shareholders 65p a share in cash, giving TRG, which incorporates Wagamama and the Brunning & Price pub chain, an enterprise value of some £701m.

TRG’s directors had recommended the deal for approval, but analysts were divided, with some warning it was too low and likely to flush out another bid. PizzaExpress owner Wheel Topco considered making a rival bid but decided not to proceed due to “market conditions”.

Following approval, the sale is expected to complete on 21 December.

It follows a turbulent year for TRG, which saw activist shareholders dispute the direction the company was taking and the renumeration packages offered to senior figures.

In September TRG announced it would offload its leisure business arm, paying the Big Table Group £7.5m to take its Chiquito's and Frankie & Benny's brands off its hands.

Big Table Group agreed to pay a token £1 for the 75 loss-making sites, while TRG contributed £7.5m to the Big Table Group subject to certain conditions.

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