Carluccio’s poised for £90m sale deal

By Mark Stretton

- Last updated on GMT

Related tags Carluccio Stock market Stock

Carluccio's shareholders are mulling over a £90m cash offer for the group
Carluccio's shareholders are mulling over a £90m cash offer for the group
Carluccio’s, the all-day Italian restaurant chain, is on the verge of accepting an offer of £90m for the entire group – from its franchise partner in the Middle East

Carluccio’s, the all-day Italian restaurant chain, is on the verge of accepting an offer of £90m for the entire group – from its franchise partner in the Middle East.

Led by Simon Kossoff, Carluccio’s has received an offer of 142p per share from Landmark Investments, which values the business at £90.3m.

The news comes as Carluccio’s steams ahead with finalising four new UK sites, amid speculation that the chain would reach 50 sites by the end of the year​.

Landmark, which operates three Carluccio’s restaurants in Dubai as well as a string of retail operations, has made the bid through a newly-formed company called C1 Acquisitions.

The offer has been rubber-stamped by the Carluccio’s board, but needs to be approved by shareholders before it can go ahead. However, shareholders may be swayed by the fact that the offer of 142p per share is at a 47% premium to yesterday’s closing share price of 96p, and at a 54.6% premium to the average closing price over the last 12 months.

If the deal is approved, the Carluccio’s board will rollover their holdings and options into Landmark’s new vehicle.

"Fair and reasonable"

The independent directors of the group said the offer was “fair and reasonable”, and the Carluccio’s directors have given irrevocable undertakings to sell the shares they control – equivalent to 14.7% of the company.

In addition, other shareholders have also indicated their willingness to accept the offer, meaning that Landmark has in total acceptances from shareholders representing 36.5% of the shares.

It remains to be seen if the group’s largest shareholder, Richard Caring, will approve the offer or make a counter offer. Caring, who holds a stake of about 12% in Carluccio’s, owns a string of assets in the sector, including The Ivy restaurant, Soho House, Cote and Bill’s Produce.

Landmark, which already owns a 5% stake in Carluccio’s, was advised by Rothschild.

Mark Stretton is editor of BigHospitality’s sister publication M&C Report

Related topics Business & Legislation Fine Dining

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