Disagreemnt Among Investors Over Wagamama Takeover | Eater London

"A prominent high-street restaurant chain that had been viewed as relatively resilient during the casual-dining downturn is now at the center of a contested proposed £559 million acquisition. Two US-based investors, Grizzly Rock Capital and Vivaldi Asset Management, have called the deal “overly risky and expensive,” urging the board to pay a nominal £6 million break fee to withdraw, and warning that significant debt and a miscalculation of the cost of capital could drive the share price down (it has fallen about 30% since the October announcement). The Restaurant Group has proposed a £315 million rights issue to help fund the takeover, but that depends on shareholders subscribing to discounted shares; if they don’t, the funding and the deal could stall. Institutional Shareholder Services recommended supporting the acquisition, and TRG says shareholders back the plan; a vote on both the acquisition and the rights issue is scheduled for a general meeting on 28 November. The dispute has raised fresh doubts about the chain’s perceived resilience and highlights broader investor concern about the viability of restaurant investments." - James Hansen