Bank Restaurant Group today completed a £32m reverse takeover of the Independent Restaurant Company (IRC).
The group, which owns the four-strong Zinc chain, will raise the funds by a placing of around 30.5m shares at 105p each.
It will initially pay up to £14.47m for Piccolino brand owner IRC, and assume £17.77m of debt.
Dependent upon performance of certain IRC restaurants, an additional payment of £8.5m will be made.
IRC will take control of the enlarged group, with Bank expected to be renamed as IRC at a later date.
The new business, which will have more than 20 restaurants throughout the UK, is to be headed up by IRC chief executive Steven Walker. Vernon Lord, IRC’s managing director, will become finance director.
Both IRC operations director Ian Donald and Bank’s executive chairman Robert Breare will continue in their respective roles.
Breare said: “The combined entity is well placed to grow earnings and maximise value for shareholders in the longer term.”
Bank sold Fulham Zinc in September for £350,000 and has delayed the opening of a new restaurant in Manchester’s Trafford centre until March 2007.
References: EGi News 27/11/06
