Prezzo shareholders approve TPG take-private

The result will come as a relief to TPG, following attempts by US hedge fund Elliot to increase its 14.9% stake in the business.

The 126.5 pence-per-share deal gives Prezzo a market cap of around £303.7m, valuing the company at 9.2x EBITDA for the 12 months to June 2014.

Following completion of the transaction, TPG plans to expand the chain by opening new restaurants and making "operational improvements".

In November, TPG received around 62% irrevocables from a consortium led by the restaurant chain's largest backer, the Kaye family, and all shareholding Prezzo directors. The Kayes also founded other Italian-themed restaurant chains Ask and Zizzi, which Cinven sold to Bridgepoint for £250m in December.

TPG, which made the approach via the Papa Bidco newco, stated it was attracted to the company's brand recognition and track record of growth in addition to the increasing popularity of the casual dining sector.

The GP has a history of investing in the food industry. Its previous portfolio companies include Burger King, Del Monte and Chobani and Ingham.

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