10th Mar 2021 16:31
(Alliance News) - Restaurant Group PLC said Wednesday it has raised GBP175 million through a placing, the proceeds of which will go towards improving liquidity headroom, accelerating deleveraging and strengthening the company's ability to capitalise on site expansion for Wagamama and its Pubs businesses.
The casual dining chain owner issued 175 million shares at a price of 100 pence each, noting that the pandemic and associated restrictions are likely to hit its ability to reduce leverage organically or support selective growth opportunities in the medium term.
Shares in Restaurant Group were up 3.2% at 112.60 pence on Wednesday afternoon in London.
The funds were raised via a firm placing of 95.3 million shares and a placing and open offer of 79.7 million shares. The fundraise will be priced at 100p per share, which the company said marked an 11% discount to Tuesday's closing middle market price of 111.7p.
The company had raised GBP57 million in equity back in April, when the health crisis first closed sit-down restaurants.
Earlier Wednesday, Restaurant reported that revenue for 2020 more than halved to GBP459.8 million from GBP1.07 billion in 2019, while the owner of pan-Asian brand Wagamama posted a pretax loss of GBP127.6 million, widened from a GBP37.3 million loss the year before.
Still to come is the open offer, which qualified shareholders can take part on the basis of five new share for every 37 existing shares held.
By Dayo Laniyan; [email protected]
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