Restaurant Group shareholders back £560m Wagamama takeover

The Restaurant Group has secured narrow shareholder approval for its takeover of Asia-inspired food chain Wagamama, despite fears of an investor backlash over the £559m deal.

Around 60% of shareholders are understood to have voted in favour of the acquisition, which was first announced last month.

Restaurant Group, which owns Frankie & Benny and Garfunkel's, had faced opposition from some investors, including Columbia Threadneedle Investments, which has a 7.7% holding. They are concerned that the deal – which will be funded through a mixture of cash, debt and a deeply-discounted rights issue – is too expensive and will increase the Restaurant Group’s debt.

The deal is also seen as risky as a time when a rapid expansion in the sector means mid-priced chains are suffering from over supply and stiff competition. Restaurant Group’s chief executive Andy McCue has said he believes there is room for another “40-60” Wagamama outlets.

Earlier this week, Pensions and Investment Research Consultants (Pirc) said the “risks and adverse implications for shareholders appear too great to overlook”.

A Restaurant Group spokesman confirmed that shareholders had backed the deal.

Wagamama, which has 133 UK restaurants, is owned by private equity firms Duke Street and Hutton Collins.