Revolution bars firm snubs nightclub deal
REVOLUTION Bars has knocked back a proposed deal to mix its cocktail bars with Britain’s biggest nightclubs operator.
Deltic Group, which has 57 venues trading under Bar & Beyond, ATIK, PRYZM, Fiction, Cameo, Kuda and Vinyl, said joining forces with Revolution’s 60-plus Revolution and Revolución de Cuba bars would create a late-night entertainment “powerhouse”.
But Revolution, which recently received a £100million takeover approach from Slug and Lettuce and Walkabout chains operator Stonegate, rejected Deltic’s plan as not being in shareholders’ interests amid concerns over “the value and deliverability of the combination”. It remains in talks with Stonegate. Deltic, created from the ashes of Luminar which went bust in 2011, described Stonegate’s 200p-a-share approach as an “opportunistic” move to capitalise on Revolution’s poor share price performance.
Revolution had been rocked by rising costs from the national living wage, business rates and the apprenticeship levy.
Deltic had put a potential stock market float on ice while refurbishing 20 sites but would have reversed its business into Revolution to achieve a listing.
Under its proposal, Deltic management would run both businesses. Deltic chief executive Peter Marks said Revolution’s bars “are an important part of a night out and often, many of their customers go out clubbing after, so our businesses sit nicely side by side”.
He added: “It is down to whether Revolution’s shareholders want to hear our story. If they want to engage, we would welcome that because we think we could put a different story to them that would have a better outcome. We think the upside is quite a bit more than £2 a share. By putting the two businesses together it has a size and robustness and bigenough profit to withstand any blips.
“Revolution has determined that it does not wish to engage in discussions with Deltic on this basis, so denying its own shareholders the opportunity to consider a choice between exploring the benefit of a potential merger and the possible Stonegate offer.”