London: UK-listed India Outsourcing Services Plc is planning to acquire Mela Group, which runs a chain of Indian restaurants in the country, for about two million pounds.
India Outsourcing, which focuses on acquisition and investment opportunities in the Indian business process outsourcing (BPO) market, said in a regulatory filing that it has conditionally agreed to acquire the London-based Mela Group.
The buyout of the Group’s three Indian restaurants and a catering business for about 2 million pounds would be through 1,00,000 pounds in cash and by an issue of up to 7,201,365 new shares at 26.37 pence per share, it said.
Mela Group runs a hotel chain named London’s Mela, besides Chowki and three Monkeys. The group also has an outside catering business.
India Outsourcing Services Plc, listed on the AIM market of London Stock Exchange, would change its name to Indian Restaurants Group Plc. Subsequently, it aims to roll out a chain of Indian restaurants across UK offering authentic Indian cuisines, the filing added.
“The Mela Group, with its highly acclaimed restaurants which offer an outstanding opportunity to roll out the first UK chain of branded Indian restaurants under the Mela and Chowki brands.
Given the large but fragmented Indian restaurant market in the UK we believe we are particularly well placed to replicate the success seen in pizza, pasta and tapas chains,” India Outsourcing chief executive Amit Pau said.
In addition, founder of Mela Group Kuldeep Singh would join the company as a director. The proposals are subject to shareholders’ approval during the firm’s general meeting to be held on 25February.