GONDOLA HOLDINGS, the restaurant group behind the PizzaExpress, ASK and Zizzi chains, looks set to return to private ownership less than a year after being floated on the London Stock Exchange.

The company, which floated last November at 320p a share, has announced that it has received an approach about a cash bid worth 415p a share — the latest in a string of bid approaches to hit the leisure sector over the past few weeks.

Gondola, which said that “there can be no certainty that any offer will be made”, refused to be drawn on the identity of its suitor, although The Times understands that it is a private equity firm, believed to be Cinven.

One analyst said last night: “The fact that it is a cash bid is significant. There are very few, if any, trade rivals who could afford to pay cash. It is bound to be a financial player.”

A bid at 415p would value Gondola at £560 million, or about £900 million, including debt of about £350 million. The shares, which had risen by

10 per cent already this week on the back of positive analyst research, closed up a further 40p at 402p last night.

The success of the approach will hinge on the two private equity firms that floated Gondola last year. TDR Capital and Capricorn Ventures International still retain a combined stake of 48 per cent, while Fidelity is the biggest institutional shareholder, with about 10 per cent.

Some industry commentators speculated that the suitor could be TDR Capital itself. Others mooted David Ross, the Gondola chairman and Carphone Warehouse co-founder. Capricorn was also mentioned because it owns the Nando’s chicken chain, often tipped as a possible merger partner for Gondola.

However, other sources said that if any connected party were involved, Gondola would have been obliged to reveal this. One source said: “It is almost certainly a straight bid from another private equity firm, such as Cinven, Permira, Candover or BC Partners.”

Mr Ross, who is part-time chairman, has almost a million shares in Gondola, which would be worth close to £4 million in a takeover at 415p a share.

Gondola, which operates about 520 restaurants throughout the UK, was effectively created from the merger of PizzaExpress and ASK Central. TDR and Capricorn took PizzaExpress private three years ago in a £278 million deal. The following year they forked out £225 million to acquire ASK Central, which owned the ASK and Zizzi brands.

The enlarged company has failed to excite investors, partly because of its high debt. Many observers had expected the company to act as a restaurant sector consolidator. It is known to have looked at a number of potential targets, but to date has made no acquisitions.

Analysts believe that, if it now falls to a bid, Gondola’s new private equity owners could take on the consolidation mantle by approaching rivals such as Clapham House Group, which runs the Gourmet Burger Kitchen and Bombay Bicycle Club chains, and Tragus Holdings, owner of Café Rouge and Bella Italia.

The bid approach for Gondola comes at a time of huge interest in the leisure sector. In the past week alone, London Clubs International and Stanley Leisure have, respectively, agreed and received bid approaches, while both De Vere Group and Hardys & Hansons have been delisted after succumbing to takeovers.

PIZZAS THROUGH THICK AND THIN

1965: PizzaExpress founded by Peter Boizot after he tastes his first pizza in Florence

1993: company floated by Boizot, David Page, Hugh Osmond and Luke Johnson in a £15m reverse takeover of Star Computer Group

2003: PizzaExpress taken private for £278m by TDR Capital and Capricorn Ventures International

2004: Acquires ASK Central for £225m to create Gondola Holdings

2005: Gondola floated with a value of £780m

2006: Receives bid approach worth £900m

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