By Guy Taylor
The Restaurant Group has come under renewed pressure from investors as Coltrane Asset Management called for change at the company after building a 3 per cent stake in the firm.
The New-york based activist investor told The Sunday Times that it backed proposals by another investor, Oasis Management, for the group to sell off its Brunning and Price pubs and airport concessions business.
“We think there is significant value to be unlocked in the company, and that the board and management need to be open to all strategic options,” Coltrane said.
The comments will put further pressure on CEO Andy Hornby, who has come under increasing criticism from stakeholders in recent months over the firm’s poor performance.
In a separate campaign, Oasis and another investor are looking to vote against Hornby’s planned pay deal. ISS and Glass Lewis have also recommended voting against the pay packets.
He received £792,000 last year, and was given 1.4 million shares, worth some £700,000, last week.
Pay deals for Hornby and other senior execs will be put to a vote on May 23 at the company’s annual general meeting.
TRG wasn’t immediately available to comment.
Oasis, which now own a 12 per cent stake in the business, has long been ramping up the pressure on the firm.
In February, it said that TRG needed an “immediate” change of governance because it had “one of the worst performing share prices of any UK leisure company”.
In March, TRG announced that it would reduce its portfolio from 166 restaurants to 75-85 due to a “tough macro-environment,” as customers chose to avoid eating out amid cost of living concerns.
But TRG’s share price nudged higher earlier this month after reporting stronger growth.
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