Independent directors at PizzaExpress have backed a £263m bid to take the company private from Luke Johnson, the man who helped float it in the first place, and Ian Eldridge, its former chief executive.
The bid, which is being part-financed by the Dutch bank ABN Amro, appears to trump a rival offer believed to be put together by the company's current chief executive, David Page, and backed by PAI Management, the private equity arm of the French bank BNP Paribas.
At 367p cash a share, the Johnson/Eldridge bid is nearly 5% higher than the 350p a share offer Page and his team are believed to have been contemplating, and nearly 11% above the company's closing price yesterday of 331.5p.
The company has struggled in recent months with falling like-for-like sales at its older restaurants, particularly those inside the M25. On February 11 it announced an 18% drop in first-half profits.
Nigel Colne, PizzaExpress's chairman, said he and the other independent directors believed the arguments for recommending the offer from Eldridge and Johnson's bid vehicle, a specially formed company called Venice Bidders, "are compelling in the context of current trading performance and the prospects over the medium term."
Eldridge, who left PizzaExpress suddenly in February amid rumours of a row with the company's then chairman, David Page, who took his place as chief exec, is believed to have been working with Johnson on a bid for the company since at least November last year. Hugh Osmond, Johnson's partner in the deal that took PizzaExpress to the stock exchange in 1997, who is now embroiled in a struggle with Six Continents, made his own move on the company just before Christmas. However, Osmond's attempt fell through in a row over fees.
Johnson said: 'With over 25 years' experience working for PizzaExpress, we believe that we understand the business very well; we firmly believe that the business has outstanding staff and great untapped potential and, notwithstanding the challenging trading environment, passionately believe in its future.
"Our intention is to develop the brand using our experience gained elsewhere in the industry. We are bringing fresh ideas and considerable enthusiasm and look forward to helping revive a fine company.'
The bid, which is being part-financed by the Dutch bank ABN Amro, appears to trump a rival offer believed to be put together by the company's current chief executive, David Page, and backed by PAI Management, the private equity arm of the French bank BNP Paribas.
At 367p cash a share, the Johnson/Eldridge bid is nearly 5% higher than the 350p a share offer Page and his team are believed to have been contemplating, and nearly 11% above the company's closing price yesterday of 331.5p.
The company has struggled in recent months with falling like-for-like sales at its older restaurants, particularly those inside the M25. On February 11 it announced an 18% drop in first-half profits.
Nigel Colne, PizzaExpress's chairman, said he and the other independent directors believed the arguments for recommending the offer from Eldridge and Johnson's bid vehicle, a specially formed company called Venice Bidders, "are compelling in the context of current trading performance and the prospects over the medium term."
Eldridge, who left PizzaExpress suddenly in February amid rumours of a row with the company's then chairman, David Page, who took his place as chief exec, is believed to have been working with Johnson on a bid for the company since at least November last year. Hugh Osmond, Johnson's partner in the deal that took PizzaExpress to the stock exchange in 1997, who is now embroiled in a struggle with Six Continents, made his own move on the company just before Christmas. However, Osmond's attempt fell through in a row over fees.
Johnson said: 'With over 25 years' experience working for PizzaExpress, we believe that we understand the business very well; we firmly believe that the business has outstanding staff and great untapped potential and, notwithstanding the challenging trading environment, passionately believe in its future.
"Our intention is to develop the brand using our experience gained elsewhere in the industry. We are bringing fresh ideas and considerable enthusiasm and look forward to helping revive a fine company.'
