Electra to list Hostmore as vehicle for TGI Friday 63rd+1st brands
By Frank Prenesti
Date: Wednesday 16 Jun 2021
(Sharecast News) - Private equity outfit Electra on Wednesday said it planned to demerge its TGI Fridays restaurant and bar chain later this year via a new listed vehicle.
Now rebranded as 'Fridays', the chain will be parcelled up with with its upmarket stablemate 63rd+1st as part of Hostmore Group, which Electra has set up to house its hospitality brands.
Hostmore will be listed on the London Stock Exchange's main market in the third quarter of 2021, Electra said in a statement, marking a break-up Electra's portfolio - which the business believes will be the best for its shareholders.
"The board has decided that the optimal outcome for shareholders, and for further significant longer-term value creation, is likely to be to list Electra's two largest remaining portfolio assets, Fridays and Hotter Shoes, on the LSE's Main Market and (junior market) AIM, respectively," the business said.
Since reopening to dine-in customers on May 17, Fridays sites saw a like-for-like growth of 12.5% compared with the same period in 2019.
"This LFL growth excludes the contribution from new stores including that of the first 63rd+1st store, which is trading in line with management expectations following its opening on 24th May 2021," the company said.
The business has also opened a more upmarket brand, cocktail-led bar and restaurant chain 63rd+1st, which it plans to expand in UK cities.
"As part of the listing processes Electra remains focused on ensuring that both Hostmore and Hotter have the appropriate balance sheets to maximise their future potential and value as standalone publicly listed companies," Electra said.
"This includes ensuring that Hostmore is well positioned to benefit from current opportunities for growth. In light of this and of the announcement of the delay to lock down easing to 19 July, Electra will continue to assess the optimal capital structure for both businesses and the potential sources of capital."
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