UK's Restaurant Group in talks with Cafe Rouge owner to divest leisure business

Restaurant

09/09/2023 14:44

LONDON, Sept 9 (Reuters) - Restaurant Group (RTN.L), the
owner of Wagamama restaurants and Frankie & Benny's, said on
Saturday it is in "advanced discussions" with Big Table Group
regarding the potential divestment of its leisure business.
    "Whilst discussions are ongoing, there can be no certainty
that they will lead to a transaction nor as to the final terms
of any such transaction," Restaurant Group (TRG) said in a
statement.
    The comment was prompted by a Sky News report which said
that Big Table, which owns the Cafe Rouge brand, is negotiating
the purchase of the Chiquito's and Frankie and Benny's chains
from TRG.
    The report cited unidentified banking sources as saying a
deal would involve TRG paying a multimillion pound dowry to Big
Table to take Chiquito's and Frankie and Benny's off its hands.
    Restaurant Group said in March it will cut the number of
Frankie & Benny's and Chiquito restaurants by about 30% to boost
 margins.
    On Friday it said Chairman Ken Hanna was stepping down after
months of pressure from activist investors to change its
management and improve profitability.
    The company operates 380 restaurants and pubs in the UK. Its
principal trading brands are Japanese noodle chain Wagamama and
Brunning & Price.
    As of Friday's close, TRG had a market capitalisation of 364
million pounds ($454 million).
    
($1 = 0.8023 pounds)

 (Reporting by James Davey; Editing by Mike Harrison)
 ((james.davey@thomsonreuters.com))