The deal will see the all-day restaurant/bar/café operator taken private by Fortress, following a court meeting and general meeting convened yesterday (30 January).
A total of 93.5% of shareholders voted in favour of the deal, and 6.5% against.
Fair and reasonable
In November 2024, Fortress made an offer for Loungers at 310p per share. The cash offer valued Loungers at approximately £338.3m and at an enterprise value of approximately £350.5m.
Earlier this month, the private equity firm tabled an increased and final offer, valuing the group at £354.4m and implying an enterprise value of £366.6m.
The new offer represents a premium of c.4.8% to 310p per share, which is considered “fair and reasonable”, and in the best interests of Loungers and its shareholders.
Initial offer
A number of Loungers shareholders spoke out against the initial offer, with fund manager Downing – which holds a 1.5% stake in Loungers – saying it was “absolutely furious” about the proposed deal. Gresham House said it would use its near 4% stake in the company stake to “vote against this transaction”.
The comments came after Slater Investments, which owns more than 10% of Loungers, and Axa Investment Management, with over 4%, said they were opposed to the takeover.
However, Canaccord Genuity Asset Management, which holds a 1.7% stake, became the latest shareholder to back the deal.
