News

Proposal for Ask Central pizza chain coming soon, says TDR

January 22, 2004

LONDON—Pizza and pasta chain Ask Central is now the subject of a rival takeover approach valuing the firm at £211 million (U.S. $389.2 million).

According to The Scottsman.com, the proposal from private equity group TDR Capital is considerably higher than a bid already agreed to by Ask with The Restaurant Group, known as City Centre Restaurants until a name change made last week.

Ask said today that a firm approach from TDR likely will come within two weeks.

"Shareholders should be aware that the board of Ask Central considers that an offer at this level would be extremely attractive," a statement released by Ask read.

The new offer is from the same group that bought PizzaExpress last year by topping an offer by the chain's chairman, Luke Johnson. TDR eventually acquired Pizza Express for £277.8 (U.S. $511 million).

In December, The Restaurant Group offered cash and shares amounting to £176 million (U.S. $) for Ask. If the purchase is made, the proposal, which had the backing of 46 percent of Ask shareholders earlier this week, would create one of the UK's largest independent chains with more than 400 restaurants.

Ask has 171 outlets under the Ask, Zizzi and Jo Shmo brands while The Restaurant Group is the company behind Garfunkel's and Frankie & Benny's.

A TDR spokesman said it was too early to comment on the group's intentions for the St. Albans-based Ask, although he described its brands as "highly complementary" to PizzaExpress.

Read related Ask Central stories ...
* PizzaExpress ponders rival bid for Ask Central pizza and pasta
* Founders of ASK Central and Zizzi's Pizza net $44 million in City Centre sale
* City Centre to pay $296 million for Ask Central Pizza & Pasta
* City Centre in merger talks with Ask Central, wants its pizza chains
* Pizza sales drive Ask Central profits in '02
* Strong '02 leads Ask Central to open more pizza sites