TMR Capital is eyeing a bid for Restaurant Group’s Frankie & Benny’s division
Activist investor TMR Capital is reportedly eyeing a bid for a group of hospitality brands, including Frankie & Benny’s, owned by The Restaurant Group.
TMR, which has a 1.75 percent stake in TRG, has pushed for a break that will allow the chain to accelerate the expansion of its flagship brand Wagamama.
Now it is considering a bid for TRG’s leisure division – which includes Frankie & Benny’s and Chiquito – as well as pub operation Brunning & Price, The Sunday Telegraph reported.
Together, the two divisions operate over 100 branches across the UK.
A price has reportedly not been discussed, but analysts suggested a ‘knockout’ bid would be around £200 million.
Tasty: TMR is considering a bid for TRG’s ‘leisure’ division – which also includes Frankie & Benny’s (pictured) and Chiquito
A sale would leave TRG with only Wagamama, the Asian-themed chain it bought in 2018, and the pubs it operates at airports and train stations.
TRG did not comment on the potential offer, but said it would continue to look at “broader strategic options.”
The group is in the process of closing 35 outlets in its leisure division, which is underperforming compared to other parts of the company.
A trade update last week showed that first-half sales in that part of TRG fell 4 percent, while Wagamama saw growth of 5 percent.