Bar chain Revo­lu­tion re­jects night­club merger plan and calls for cash of­fer

Belfast Telegraph - Business Telegraph - - News - BY RAVENDER SEMBHY

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.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.