Carluccio's agrees £90m takeover by Dubai retail group

The cash bid values Carluccios shares at 142p, sending the stock 43p higher to to 138.6p.Landmark, which already has a 5% stake in the company, operates three Carluccio’s restaurants in Dubai under a franchise deal.

Carluccio’s board has backed the bid and the senior management team led by managing director Simon Kossoff will continue to run the operation post deal, and with an equity stake in business.

Simon French, analyst at Panmure Gordon, said: "The offer is conditional on the bidder receiving valid acceptance of not less than 90% of the Carluccio’s shares. As such, its fate of appears to lie in the hands of Richard Caring who owns 11.8% but has not given an irrevocable undertaking."

London restaurant entrepreneur Caring is the company's largest shareholder with a 12% stake. Currently, 36.5% of the existing equity has accepted the offer.

Mukesh Jagtiani, Landmark Group's Chairman, said: "Carluccio's constitutes one of the leading UK restaurant chains within its all day dining niche. We believe Carluccio's and its management team have created a strong business and brand. We look forward to supporting the management and working with them and the staff to deliver a successful growth strategy."

See Bloomberg's report: Billionaire Jagtiani to Buy U.K. Carluccio's Restaurants for $139 Million

The Carluccio's announcement comes at a time of increased bid speculation in the casual dining market. Wagamama has been put up for sale, while growing takeover rumours surround The Restaurant Group and Mitchells & Butlers. See Wagamama: a story of international scope

Meanwhile, Bay Restaurants is soon expected to announce a buyer for its Ha! Ha! chain.