Wheel Topco, the owner of Pizza Express, has confirmed it will not be making an offer for The Restaurant Group ‘due to market conditions’.
TRG said last month it had received a request for due diligence from Wheel Topco, which was mulling a potential surprise bid for the group. However, no bid was formally submitted.
The Restaurant Group shares fell on Tuesday and were down 3.32 per cent or 2.20p to 64.10p in early morning trading.
No deal: Wheel Topco, the owner of Pizza Express, has confirmed it will not be making an offer for The Restaurant Group
Prior to the bid last month, TRG said it had agreed to be taken over by private equity firm Apollo in a £701million deal.
Under the terms of that deal, shareholders would receive 65p in cash per share.
Last month, Apollo, said: ‘Apollo has closely followed TRG over many years and believes that TRG is a high quality and leading company in the casual dining market with an attractive portfolio of concepts and brands.
‘These are all characteristics which are highly valued by Apollo.’
TRG told investors the bid would provide a ‘superior outcome for TRG Shareholders compared to continuing to pursue the independent strategy of TRG’.
It said: ‘The TRG Board has confidence in the margin accretion plan over the next three years, but is cognisant of the premium, certain value of the Acquisition against the prevailing risk for all consumer-facing businesses with exposure to macro-economic uncertainties.’
The hospitality sector has been battling higher costs and staffing shortages at a time when many consumers have been looking to tighten their purse strings amid rising inflation.