Fulham Shore, the David Page-led investment vehicle has announced it has conditionally agreed to acquire Kefi Ltd, the owner of The Real Greek restaurant group for £13.9m.
The group has also announced its intention to withdraw the ordinary shares of 1p each in the company from trading on the ISDX Growth Market and seek admission to trading on AIM with a conditional subscription to raise approximately £1.6m at 6p per Ordinary Share.
The acquisition of the Real Greek, which has increased sales from £7.2m to £8.6m and has an average spend per diner of around £14, constitutes a reverse takeover. The seven-strong brand currently produces profit after tax of £800k.
The company said it believes there is the potential for up to 40 The Real Greek restaurants in the UK and a good number of potential locations have already been identified.
It further believes that the successful recent opening in Windsor has demonstrated the ability of The Real Greek’s model to operate successfully outside London in towns with populations of more than 20,000. The group is actively seeking more sites, initially in, and within manageable reach of London.
An eighth The Real Greek restaurant, in Berwick Street, Soho, is scheduled to open in early 2015
The company said: “Assuming the passing of the resolutions at the General Meeting it is expected that admission to AIM will become effective and dealings in the enlarged issued share capital of the Company will commence on AIM at 8.00 a.m. on 20 October 2014.”
Fulham Shore said that trading in the first five months of the current financial year ending 29 March 2015 has been in line with the directors’ expectations, with the Franco Manca franchise in Tottenham Court Road making a welcome contribution to the company’s revenues.
