Ten Entertainment agrees £287m US private equity takeover

Ten Entertainment shares rose on Wednesday after the British bowling alley operator agreed to a £287 million takeover by US private equity firm Trive Capital Partners.

The bowling group, which operates 52 locations in Britain, told investors they would receive 412.5p per share, a 33 percent premium to their closing price on Tuesday.

Dallas-based Trive's takeover vehicle, Neon, already has support from major shareholders representing 39.5 percent of the shares, Ten said.

Ten amusements rose 31.61 percent to 408p on Wednesday morning, taking full-year gains to 64.3 percent.

Ten Entertainment's board is urging remaining shareholders to support the deal, which is expected to close in the first quarter of 2024.

They told investors that while they “remained confident” in the group's “ability to succeed as an independent business”, Ten is “not immune to the highly volatile national and international political outlook coupled with a volatile economic backdrop”.

The board added: 'The directors also believe that, in light of the opportunities, risks and historical trading in the TEG share price, the offering… provides an opportunity for TEG shareholders to accelerate the crystallization of accelerate a certain value from their investment at a reasonable price. attractive premium.

'The acquisition provides TEG shareholders with the opportunity to achieve an attractive premium to the current share price, which has performed strongly and is trading near a 52-week high.'

Adam Bellamy, Chairman of TEG, said: “I am confident that the growth strategy we have put in place for the business will continue to deliver results for all our stakeholders.

“While TEG has performed well in the public markets compared to its peers, the acquisition provides all TEG shareholders with the opportunity and certainty of an exit that I believe recognizes the underlying value of our company.”

Commenting on the deal, Steve Clayton, head of equity funds at Hargreaves Lansdown, said the group's directors “seem to be essentially saying it's an uncertain world and guess what, money talks.”

“The price Trive is offering is a significant premium over TEG's previous record, set before the pandemic.”

In addition to more than 1,000 bowling lanes across dozens of locations, the Bedford-based company's facilities include Houdini Escape Rooms, American pool tables and laser arenas.

Revenues rose to record levels after pandemic restrictions were lifted.

In turn, Trive supports the market position of TEG and its management team, which has a “clear vision and growth strategy for the future direction” of the company.

It said: '(Trive) believes it can support TEG's strong management team in accelerating its long-term growth potential and, where appropriate, provide access to additional capital, expertise and resources required to drive the achieve TEG's strategic objective to accelerate growth. the long-term potential of the company.

'This will enable the further investment required to deliver TEG's strategic growth agenda of expanding the number of locations and improving the quality and breadth of services TEG offers to its customers.'

Trive partner Shravan Thadani added: “Trive believes that private ownership will enable TEG to realize its long-term growth potential through continued investments in organic initiatives and strategic acquisitions.

“To this end, and given our experience in the consumer and multi-unit retail sectors, we are pleased to provide the operational resources, strategic support and capital necessary to strengthen TEG's next phase of growth.”