Bar chain Revolution rejects nightclub merger plan and calls for cash offer
TAKEOVER target Revolution Bars, which has one pub in Northern Ireland, has rejected the latest advance from Britain’s biggest nightclub operator to merge the two firms, instead say- ing it would prefer a cash offer.
Deltic last week proposed an all-paper merger that would see embattled Revolution own 65% of a combined entity and Deltic the remaining 35%, creating a bar giant with annual sales of more than £270m.
However, Revolution has so far favoured a takeover offer by Slug And Lettuce owner Stonegate, which struck an agreement in August to acquire it in a £101.5m deal.
Revolution operates a Revolucion de Cuba bar in Belfast’s Arthur Street after snapping up the former Cafe Vaudeville. Last week it said the opening had been its most successful over the last two years.
Revolution, which owns more than 60 Revolution and Revolucion de Cuba high street bars, said of Deltic’s approach: “The board does not believe that the merger proposal would create shareholder value for Revolution’s existing shareholders in excess of the certain and immediate value represented by the recommended 203p cash offer from Stonegate Pub Group.
“The board encourages Deltic to make a cash offer for Revolution rather than continuing to focus on its current merger proposal.”
Revolution shareholders are due to meet next week to vote on the Stonegate offer. The latest twist in the takeover saga comes after Revolution revealed earlier this month that annual profits fell by 29% to £3.6m.