The Restaurant Group confirms £559m Wagamama takeover and thanks shareholders after narrow vote

The Restaurant Group has confirmed its £559m takeover of Wagamama and thanked shareholders who narrowly voted through the deal.

The Frankie and Benny's owner had been set for a shareholder showdown after a number of investors voiced their intentions to vote down the proposed acquisition to buy Wagamama from private equity firm Duke Street last month.

The deal was passed but just under 40 per cent of shareholders opposed the deal with many concerned over the size and price of the deal.

The group confirmed the completion of the takeover this morning and announced that Co-operative Group and Entertainment One chairman Allan Leighton would be joining TRG as a non-executive director.

Company chairman Debbie Hewitt said: “We would like to thank all shareholders for their engagement in this process and we look forward to delivering the benefits of the acquisition.

“We welcome all Wagamama colleagues and thank them and all of our colleagues at the Restaurant Group for their continued focus on our customers during this busy period.”

Ahead of the vote in November, Columbia Threadneedle Investments – a top five investor that controls a 7.7 per cent stake in The Restaurant Group – said that it would be opposing the Wagamama buyout over concerns around the size and the price of the deal.

The Restaurant Group said that the price was justified by the company’s growth rate and by the cost savings generated by combining the Asian food chain with its own operations.

A number of major shareholders also publicly supported the deal, with Schroders, Royal London Asset Management and J O Hambro all backing the proposals.

Despite 39.6 per cent of shareholder votes opposing the deal, a senior Restaurant Group executive told City A.M. it was “not the knife edge” that had been expected.

Not a single question was asked by investors at a general meeting to vote on the acquisition this morning.