Analysts expect Apollo’s acquisitions of The Restaurant Group to go through, describing it as an “attractive offer”.
Stifel said 65p per shares seems a “fairly full” valuation, and ahead of its own target price.
The top six shareholders are understood to have been wall crossed and recommend the offer, with irrevocable undertakings at 19.9% including from Oasis (17.8%), according to Stifel.
The bid could also flush out another offer.
“We understand that this was an unsolicited approach, so it is possible that it flushes out another bid,” analysts at Stifel added. “But TRG has arguably been ‘in play’ for some time, given the activist interest and ongoing strategic review. On balance therefore we expect this deal to go through and would recommend investors accept the 65p offer.”
Goodbody said though TRG was making good progress on its turnaround plan, the bid reflects a “healthy premium” for a business that has struggled with de-leverage and margin pressures historically.
“In addition, we note the shares are already +55% year to date, following recent guidance upgrades driven by strong trading performance in the Wagamama, Pubs and Concessions businesses and the announcement of the sale of the perennially struggling Leisure business.”
