Merger proposal snubbed by group
REVOLUTION BAR GROUP REJECTS TALKS
THE Greater Manchester operator of Revolución de Cuba has snubbed merger talks with a rival nightclub owner, Deltic.
Struggling AIM listed Revolution Bars Group is currently in talks with Slug and Lettuce owner Stonegate Pub, which made a £100m takeover bid last month.
However, Deltic, which owns 57 clubs under brands including PRYZM, Bar&Beyond, Steinbeck&Shaw, ATIK, and Fiction, said it was dismayed at the prospect of Revolution falling into the hands of the Stonegate Pub Company, and claimed its 200p per share offer was “opportunistic” and would be a “disappointing outcome” for Revolution investors. Deltic said it has offered an alternative proposal that would entail Revolution making an all-share offer for Deltic and retaining its stock market listing. But Revolution has told Deltic it does not wish to discuss its alternative proposal. Going public with its offer this morning, in a statement Deltic said: “As a competitor, Deltic has observed in Revolution a business with solid growth potential and some great trading outlets that has been negatively impacted by financial management setbacks, whilst having limited scale to retain investor support for a publicly traded company.
Deltic has observed in revolution a business with solid growth potential Deltic spokesperson
“Deltic believes that a combination of its business with Revolution would transform the scalability of the enlarged group, provide scope for material synergies and enable the operational issues within Revolution to be better addressed through Deltic’s management team taking responsibility for both businesses, creating a powerhouse group in its sector that can exploit further opportunities to both expand and consolidate the market.”
Under The City Code on Takeovers and Mergers, Deltic now has until 5pm on 12 September 2017 to either make a formal offer or walk away.
Reporting its financials last month, Revolution Group, which operates 68 premium bars across the UK, said business was hit during the days that followed the Manchester and London terror attacks.
It reported total sales of £130.4m for the 52 weeks to 1 July.
That was up 9.2 per cent on the previous year.
However like-for-like sales rose by 1.5 per cent, down from the 1.7 per cent reported after 44 weeks in the period to July 1.
The group said the terrorist attacks in Manchester on 22 May and in London on 3 June impacted business during the days that followed, particularly in the north west where the group has a significant number of venues - five in central Manchester and five in Liverpool.