The owner of the Wagamama restaurant chain is being targeted by a second activist investor — Irenic Capital Management — with Oasis Management already pushing the London-based company for changes, according to people with knowledge of the matter.
(Bloomberg) — The owner of the Wagamama restaurant chain is being targeted by a second activist investor — Irenic Capital Management — with Oasis Management already pushing the London-based company for changes, according to people with knowledge of the matter.
Irenic Capital has had private discussions with the Restaurant Group Plc, the people said, asking not to be identified discussing private information. The talks covered the potential divestiture of its pubs and concessions businesses, increasing disclosure around the profitability of Wagamama and reducing corporate costs, said one of the people.
Irenic Capital, founded by Andy Dodge and Elliott Investment Management alumnus Adam Katz, has been amassing a position in Restaurant Group but the size of its stake couldn’t be learned. A representative for Irenic Capital declined to comment.
A spokesperson for Restaurant Group decline to comment beyond a February statement, which said “the board welcomes constructive input from all shareholders that is supportive of the creation and delivery of long-term sustainable shareholder value.”
In February, the Restaurant Group rejected Oasis Management’s demand for a board seat, saying it was already reviewing strategic options.
The company, which is due to report full-year results on Wednesday, operates more than 400 restaurants and pubs across the UK, including chains Frankie & Benny’s, Chiquito and Brunning & Price.
The company’s shares have fallen 32% in the past year, leaving it with a market value of £348 million ($416 million).
Last year, Irenic Capital was the first News Corp. investor to publicly oppose a plan to merge with Fox Corp., a proposal that was withdrawn by Rupert Murdoch in January. Irenic Capital has also disclosed a position in another British company, Capricorn Energy Plc.
Oasis Management, based in Hong Kong, amassed a 5% stake in the Restaurant Group, Bloomberg News reported in January. The activist investor also called the company to increase transparency with the market as well as consider selling its Brunning & Price pubs and airport concessions business, according to letters and a report from The Times.
The Restaurant Group acquired Wagamama in 2018 in a £560 million deal.
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