Indian Restaurants Group has been formed by the reversal of restaurants operator Mela into India Outsourcing Services.
After more than three years seeking an Indian acquisition involved in outsourced services it has decided to become a restaurants group.
Mela will cost up to £1.999m in cash and shares at a price of 26.37p each. The final number of shares issued is based upon the achievement of certain targets. The cash part of the consideration is worth £100,000 while the costs of the deal are £275,000.
Management wants to create a national chain of Indian restaurants using the Mela and Chowki brands. The sector is worth £3bn but there is no national chain.
Mela currently operates three restaurants - two in the West End and one in Herne Hill - and a catering business.
At 13.5p, the company is valued at £1.77m. The pro forma net asset value of the company is £2.14m - although it appears that it may not take account of the £275,000 cost of the deal.
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