Restaurant Group: Have shareholders been stitched up?
Restaurant Group is planning on buying Wagamama from its current private equity owners for £559m, £315m of which will be funded via a heavily discounted rights issue. With dilution and a dividend cut to stomach, it’s not a great time to be a Restaurant Group shareholder.
Restaurant Group (RTN) is having to raise £315m to fund its acquisition of Wagamama. Current investors have been offered new shares at a 57% discount to the closing price on the last day of trading prior to the announcement of the terms of the rights issue and at a 63% discount to the last day of trading before the acquisition was confirmed in late October. Shares are down 19% in the last two weeks.
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