Thu 30th Oct 2014 - Prezzo agrees deadline extension for bid Prezzo agrees deadline extension for private equity offer: Italian restaurant company Prezzo, led by Jonathan Kaye, has agreed an extension to the deadline for an offer from private equity companies Advent Capital and TPG Capital. The company reported on 2 October that it had received preliminary proposals in relation to possible offers from Advent International and TPG Capital. Takeover Code rules meant a deadline of 5.00pm today was set for the private equity firms either to announce a firm intention to make an offer for the company or to announce that they do not intend to make one. Prezzo stated: “Following the receipt of requests from Advent and TPG, the Board has sought the consent of the Takeover Panel for an extension to the deadline in order to further explore each of the proposals. Both Advent and TPG have had access to information which has been made available by the company.” The Takeover Panel has consented to an extension to the deadline so that Advent and TPG must now, by no later than 5.00pm on 14 November, ‘put up or shut up’. Prezzo added: “This announcement has been made without the prior agreement or approval of Advent or TPG and does not constitute a firm intention to make an offer under Rule 2.7 of the Code. There can be no certainty that an offer will be made for the company, nor as to the terms on which any offer will be made. A further announcement will be made in due course, as appropriate.” Philip Kaye, the patriarch of the Kaye family, owns a 44% stake in Prezzo and the Kaye family, through a number of investment vehicles, control over 58% of the business, which has a market value of £328m. Media reports suggested this month that the private equity approach, at a nil premium, is the result of the Kaye family quietly sounding out interest from private equity groups to take it private. The nil-premium element suggested the proposals already have the family’s backing. The Kaye family attempted to take Prezzo private five years ago, but plans were derailed by volatile debt markets. Advent and TPG are thought to be interested in using the Kaye-backed restaurant as a platform to create a larger Italian restaurant business. Prezzo has no debt, which makes it a strong proposition for private equity bidders interested in using the company’s balance sheet to fund expansion plans by loading it with debt. It has suggested the vehicle may bid to buy Gondola Holdings Ask Italian and Zizzi businesses.