Noodle-bar chain Wagamama is in talks with venture capital firms over a possible buy-out.
The group has put plans for a £50m stock market flotation on hold until it is clear whether a deal will be struck.
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| Neill: twin-track approach |
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Chief executive Ian Neill and his management team have been running a twin-track strategy for some time - preparing for a flotation but testing the market to see if there might be any interest in the chain.
The move would also give Neill a chance to compare what a bidder might pay against the flotation valuation.
Wagamama, which now has 24 restaurants, is understood to have held talks with a number of venture capitalists, and the highest bid received is thought to be in the region of £50m.
The firm plans to open 10 restaurants this year, and latest sales figures, for the year to April, are expected to be strong.
Should the firm end up going the flotation route, Neill has said the money raised will be used for further expansion of the chain.
by Nic Paton
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