Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Pelican swallows Tu Tu

Neil Thapar,Chief City Reporter
Saturday 20 November 1993 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

PELICAN GROUP, the Cafe Rouge restaurant chain in which Robert Earl, of Hard Rock fame, has a substantial stake, is gobbling up a US theme restaurants business for dollars 2.1m ( pounds 1.4m).

The deal will give Pelican a 50 per cent interest in Cafe Tu Tu Tango, which owns restaurants in Atlanta and Miami with the theme of an artist's studio.

Artists display their work and paint in the restaurants while diners tuck into their meals and listen to live music and entertainment acts. The acquisition is Pelican's first in the US, where it plans to open more restaurants with the Cafe Tu Tu theme.

Cafe Tu Tu made pre-tax profits of dollars 212,000 on turnover of dollars 4.3m last year, when only one of the sites was operating. It has net cash of dollars 1m, which will be used for expansion. Pelican is financing the purchase with a vendor placing involving 2 million shares. The remaining 50 per cent stake is being retained by its founder, Brad Weiser, but Pelican has an option to buy him out in five years.

The buyout terms amount to eight times 50 per cent of Cafe Tu Tu's average pre-tax profits for the years ending 1998 and 1999, net of finance costs. Pelican shares were unchanged at 71p.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in