The Restaurant Group’s campaign to persuade shareholders to back its £559m takeover of Wagamama received a boost yesterday when a proxy adviser backed the deal.
Institutional Shareholder Services said that the purchase of the Asian noodle bar chain was “supported by strong strategic rationale and substantial synergies”.
It said that despite negative market reaction, which had sent shares in the Frankie & Benny operator down 30% over the past fortnight, the acquisition warranted “qualified support”. ISS also gave qualified support to a £315m rights issue because it was “instrumental to the financing of the headline transaction”.
