(Vaughan) Fairfax Financial proposes to close the capital of Recipe Unlimited, the owner of around twenty banners such as Le chalet suisse, Harvey’s and The Keg.
Posted yesterday at 3:07 p.m.
The proposal places a value of approximately $1.2 billion on Canada’s oldest and largest full-service restaurant chain.
Fairfax already owns a 38.5% controlling interest, and 61% of the voting rights, in Recipe Unlimited; it offers $20.73 in cash for most of the remaining shares, apart from the Cara Holdings stake.
The offer represents a 53.4% premium to Recipe Unlimited’s closing price on Aug. 8, a statement said.
The transaction must be approved by most minority shareholders and Recipe Unlimited says its board of directors intends to recommend that they accept it at a special meeting.
Recipe’s title took a beating during the pandemic and the company had to close several of its dining rooms.
Its sales have, however, rebounded recently, in connection with the easing of restrictions. Last week it announced sales up 55% to 873 million.
Cara Holdings would continue to invest in the company after it closes.