Pizza Express owner considering bid for Restaurant Group

The Restaurant Group confirmed on Thursday that Wheel Topco, the owner of Pizza Express, is considering making a bid for the company.

Responding to press speculation, TRG said it had received a request for due diligence from Wheel Topco in the last week, in order for it to evaluate a possible offer for the group.

"No written or verbal indicative proposal relating to a possible offer, including as to terms, price or form of consideration, has been made to the board of TRG by Wheel Topco," TRG said.

The Wagamama owner said it will provide the diligence information and will "carefully consider" any offer made.

A further announcement will be made as appropriate, it said, adding that there can be no certainty that an offer will be made, nor as to the terms of any offer.

Just two weeks ago, TRG said it had agreed to be taken over by private equity firm Apollo in a £701m deal. Under the terms of the deal, TRG shareholders will receive 65p in cash per share.

Danni Hewson, head of financial analysis at AJ Bell, said: "The prospect of a bidding war for The Restaurant Group has emerged with news Pizza Express, currently controlled by a group of debt funds, is considering an approach for the Wagamama owner.

"The idea of combining two of the UK’s most popular casual dining chains has logic to it and may prompt Pizza Express to push hard to rival private equity firm Apollo’s existing £500m bid, particularly given former Wagamama chair Allan Leighton now occupies the same position at Pizza Express."

At 1025 BST, the shares were up 2% at 67.80p.