A must-buy for investors: Pizza Express |
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Sat, 22 Oct 2005 13:05
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LONDON: Pizza Express is expected to return to the stock market just two years after being taken private. The eatery chain’s holding company Gondola expects a valuation of between £800 million and £900m after the restaurant chain goes public.
Gondola, which is also the holding company for Ask Central and Zizzi, said it planned a flotation of £430m. Once the stock is listed about 600 managers at its branded outlets and restaurants would each receive shares worth £1000.
The pizza giant is returning to the stock market after May 2003 when it was taken private in a power struggle for control of the firm between founder Luke Johnson and joint bidders TDR Capital and Capricorn Ventures. After the flotation, these two main owners’ holding would be diluted; it would also mean a good windfall as they had acquired the then struggling chain in 2003 for just £280m. They would continue to be majority shareholders. Pizza Express currently has about 310 outlets across the UK.
For the Gondola group, it would mean fund expansion and also help to pay off debt. The group is a leader in casual dining and owns about 500 restaurants employing 1,000 staff. It owns three of the UK’s currently leading pizza and pasta restaurant chain brands - Pizza Express, Ask Central and Zizzi. The group’s plans for this year include opening 20 to 25 new restaurants across its different brands. From next year onwards, it plans to open 25 to 30 a year.
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Food is cooked on the premises for freshness 