LONDON (dpa-AFX) - The Restaurant Group Plc (RTN.L), a British chain of restaurants and public houses, said on Monday that it has inked deal with respect to the proposed sale of its loss making Leisure business comprising of 75 trading sites and associated restaurants to the Big Table Group.
The consideration of the transaction is just 1 pound.
As part of the deal, expected to be closed in early fourth-quarter, TRG will pay a cash contribution of 7.5 million pounds to the Big Table Group.
Restaurant Group expects that the transaction will marginally accretive to its earnings in its first full year of post-transaction.
The Group has concluded that the sale will significantly support its adjusted EBITDA margin accretion and deleveraging.
In addition, the seller noted that the transaction will create a high-quality retained group consisting of the three divisions of Wagamama, Pubs and Concessions which have delivered very strong like-for-like sales and adjusted EBITDA growth during the first half of 2023, with appealing long-term prospects.
For the full year 2022, the Leisure business had posted a statutory loss before tax of 65 million pounds.
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