Electra Private Equity PLC has decided demerge from TGI Fridays (Fridays) and list it on the FTSE Main Market, with a potential value of around £275m.
Neil Johnson, Chairman of Electra, said, 'The new management team at Fridays has performed admirably through the pandemic, not just sustaining the business in the most difficult circumstances, but also transforming it.
'In light of this, and thepotential for further significant longer term value creation, the Board has decided that the optimal outcome for shareholders is likely to lie in a capital market solution.
'It is our intention to demerge Fridays onto the FTSE Main Market late in the third quarter of this year. Plans are well advanced for the listing.'
TGI Fridays highlights
o All 87 stores including new Fridays in Lincoln and the first '63rd+1st' in Cobham, Surrey, opened within relevant Covid-19 constraints;
o In the three weeks since re-opening for restricted 'dine in' (no alcohol and 8pm closure) on 26 April, Fridays' eight Scottish stores have recorded sales up 14% on unrestricted trading in the same period in 2019;
o Pro forma EBITDA on recovery to 2019 demand and market share levels of £32.7m (2019: £25.6m):
o Net debt of £62m as at 31 March 2021, after adjustment for Covid-19 related accruals;
o Strong pipeline of new openings in 2021 and beyond, for Fridays and its new complimentary brand, 63rd+1st.