Dubai's Landmark acquires Carluccio's for $139m

Upmarket British cafe and restaurant chain Carluccio's agreed to a £90 million ($139m) takeover by Dubai-based retail, hospitality and mall manager Landmark Group, sending its shares soaring on Thursday.

The 142 pence offered for each Carluccio share represented a 48 per cent premium to Wednesday's closing price.

Shares in the Italian-themed restaurant chain, founded by TV chef Antonio Carluccio in 1999, gained 45 per cent to 139 pence, their highest level for over two years, following the approach.

The company said Landmark, which holds the franchises for Carluccio's in the Middle East and was acting through its investment company C1 Acquisitions, holds or has undertakings to accept the offer from 36.5 per cent of Carluccio's shareholders.

However, in an interview with Reuters on Thursday, Chief Executive Simon Kossoff said the biggest shareholder in the chain, London restaurant entrepreneur Richard Caring, was not among the shareholders who have so far backed the bid.

Carluccio's authentic Italian pasta dishes and desserts attract a largely upmarket clientele to 47 high street outlets throughout Britain.

Antonio Carluccio no longer plays a role in the business but still advises on menus.

Landmark Group operates over 900 stores in 15 countries and has a turnover in excess of $3.2 billion, according to its website.

Kossoff said the company had not spoken to Caring, who owns upmarket London restaurants The Ivy and Scotts of Mayfair, in the three years since he became a shareholder.

"Throughout the whole history of Richard Caring's shareholding, we've had no communication or conversation with him at all," he said in an interview.

Last week, a British newspaper reported market rumours Caring was lining up a cash offer for Carluccio's worth 130 pence per share share.

Altium Securities said a rival bid is a possibility and lifted its target price on the stock to 142 pence from 100.

"With some large shareholders still to provide an indication of their intent, it remains possible a counter bid will emerge. We have always been of the view that Carluccio's is a quality business with significant long-term development potential," said Altium Securities analyst Wayne Brown.

Landmark are being advised by Rothschild and Carluccio's are being advised by Hawkpoint.