Is Johnson the mystery Belgo investor?
The mystery investor stalking the Belgo restaurant group may in fact be backed by founder and stakeholder Luke Johnson (pictured), it was rumoured this week.
The beer and mussels group has, for the past week, been trying to find out who was behind Kintoro International, the unknown investor that snapped up 14 per cent of the company shares.
The obvious conclusion in the City was the company was about to receive a hostile bid but recent speculation has suggested the person behind Kintoro is Johnson, and that he is planning to lead a management buy-out to take the company private.
Mr Johnson currently owns just under four per cent of the company. If he did purchase shares directly he would, as a director of the company, have to declare it immediately.
A spokesman for the company said: "I think people are jumping at shadows with this. Large blocks of shares are often traded where investors see value. We are still waiting to see who is behind Kintoro and the identity will be disclosed in the normal way."
Kintoro - a hero from a Japanese folk tale -appeared on Belgo's share register two weeks ago after it bought most of the shares sold by institutional investors Zurich Financial Services and Edinburgh Small Companies Trust.
The share price has been depressed for some time. It currently stands at little more than 2p-a-share, down from the 1998 high of 12.5p, therefore valuing the company at around £23m.
Belgo Bierodrome, the company's core business, has struggled in recent times. BSE, foot-and-mouth, the economic downturn and the recent terrorist attacks have all taken their toll. Belgo also owns the celebrated London eateries Le Caprice and The Ivy, which so far do not seem to have suffered from a downturn in trade. Both restaurants are already booking reservations into 2003.
But despite the all-conquering Caprice and Ivy flagships, the group recently reported a big swing into the red. Last year it made a pre-tax loss of £1.4m compared to profits of £4.1m the year before. A one-off payment of £1.2m was made to try to expand the Belgo brand to New York, and £3.7m was spent on assets. The group currently has debts of £6m.
Related stories:
Mystery investor 'Kintoro' stalks Belgo (8 October 2001)
