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U.S. investment firm Fortress Investment Group LLC raised its offer for Loungers PLC to £366.6 million ($451 million) on Wednesday, aiming to persuade shareholders of the British hospitality chain to accept its bid. The revised offer, which reflects a price of 325 pence per share, follows a £350.5 million bid made in November.

Fortress, which manages approximately $48 billion in assets, emphasized that it would not raise its bid unless a competing offer emerged. The company currently holds around 40% of Loungers' shares and needs at least 75% for the takeover to proceed. If successful, the acquisition will result in Loungers' delisting from the London Stock Exchange.

Domnall Tait, managing director of Fortress, stated that the increased offer reflects the firm’s confidence in Loungers’ business and management team, despite recent challenges in the U.K. market.

Loungers' chairman, Alex Reilley, expressed satisfaction with the updated offer, highlighting that it would provide additional incentive for shareholders to vote in favor of the deal. The Loungers board, after consulting with investment bank Houlihan Lokey, has unanimously recommended that shareholders accept the offer, citing concerns about future market conditions and consumer spending in 2025.

The meetings for Loungers’ shareholders to vote on the acquisition are scheduled for Jan. 30. The offer follows broader concerns within the retail and leisure sectors regarding rising National Insurance contributions, minimum wage increases, and inflationary pressures.

Legal counsel for Fortress is provided by Slaughter and May, while Jones Day represents Loungers.