Rival bidders trade blows as bar brawl breaks out
The fight between two nightclub chains for the affections of struggling cocktail bar group Revolution Bars intensified yesterday as rival suitors traded blows.
Slug and Lettuce owner Stonegate yesterday said it had agreed to buy Revolution for 203p a share, valuing it at around £101.5m.
This came just weeks after Revolution – whose shares plummeted by 46pc at one point in May after it issued a profit warning – rejected an offer from rival Deltic Group, which owns 57 clubs across the UK including the Oceana chain.
however, just hours after the deal between Stonegate and Revolution seemed to be set in stone, Deltic – which had wanted to merge with Revolution – said it was now evaluating an offer.
It said Stonegate’s deal ‘significantly undervalues’ Revolution, and said it has been granted access to Revolution’s accounts.
In a statement, Revolution confirmed that Deltic has been MARKET REPORT granted access to its accounts but said the firm has not made an offer. Revolution said the deal with Stonegate will give its own shareholders greater value for their money and recognises its medium-term growth potential.
Ashton-under-Lyne-based Revolution, which owns more than 60 Revolution and Revolucion de Cuba high street bars, has recently been hit by the rising living wage, the apprenticeship levy, and an increase in business rates.
Yesterday shares were up by 12.3pc, or 22.75p, to 208.5p.
The FTSE 100 climbed 0.33pc, or 24.41 points, to 7407.06, helped along by rebounds at doorstep lender Provident Financial and advertising giant WPP following heavy falls earlier this week.
Sandwich maker Greencore shot itself in the foot after an update intended to reassure investors following a drop in the firm’s shares on Wednesday led it to collapse even further.
Following a decline of around 5pc, the ready-meal maker said nothing has changed since it released its third-quarter trading statement at the end of July.
But even more investors fled and shares fell 8.7pc, or 18p, to 190p, its lowest level in over a year.
Sports Direct boss Mike Ashley has taken another shot at five-aside operator Goals, nearly doubling his stake in the firm.
Through Sports Direct, the billionaire Newcastle United owner increased his position to 9.81pc from 4.8pc and shares in Goals rose 1pc, or 1p, to 103.5p. A busy week for life sciences firm
OptiBiotix Health continued with the news that it will launch a cholesterol and blood pressure lowering ingredient in the US next month at a Las Vegas trade show.
Shares rallied 2.2pc, or 1.5p, to 71p, and are up 15.1pc this week.
A jump in mobile phone betting in Asia helped gambling software firm Playtech post an 84pc yearon-year jump in profit in the first half of 2017 to around £82.5m. It hiked its dividend by 10pc to 12.1 cents per share, sparking a payout of £2.2m for Israeli billionaire founder Teddy Sagi, who owns nearly 20.2m shares. Playtech rose 0.2pc, or 2p, to 995p.
Betting firm Sportech, which completed its £83m sale of the Football Pools in June, saw yearon-year profits rise £1.5m to £1.1m in the first half of the year.
But it is still waiting for the US Supreme Court to decide on whether to lift a ban on sports betting in the country. Shares rose 1.9pc, or 1.88p, to 98.38p.
Meat packers Hilton Food Group announced a deal to supply sandwiches, meals, and soup to Tesco stores in central europe. Shares fell 0.9pc, or 6.75p, or 757.75p.