Deltic attempts to gatecrash Stonegate bid for Revolution
NIGHTCLUB owner Deltic has gone public with its desire to merge with Revolution Bars as it looks to sink a rival bid by Slug and Lettuce owner Stonegate.
Deltic, which owns 57 clubs under brands including PRYZM and Fiction, called Stonegate’s bid for Revolution “opportunistic” and claimed its 200p per share offer would be a “disappointing outcome” for Revolution investors given it matches the value of the company when it listed on the stock market in 2015. But Revolution has told Deltic it does not wish to discuss its alternative proposal, which would see the two companies merge but remain listed under the Revolution name. Under this plan, Deltic’s owners would hold an as yet undisclosed number of shares in the enlarged entity.
Peter Marks, the Deltic boss, said that by rebuffing his offer Revolution was “denying its own shareholders the opportunity to consider a choice” between its bid and the existing one from Stonegate. He believes an enlarged listed entity would produce better returns for investors.
“We are disappointed by this outcome and believe Revolution shareholders should be aware of alternatives to the possible Stonegate offer,” Mr Marks said. He urged Revolution to reconsider its position and stated that under takeover rules it had until 5pm on Sept 12 to make a formal offer, which would then have to be put to shareholders or announce it was not pursuing a deal. A spokesman from Revolution said it had met with Deltic but had “concerns” about the benefits of its offer and “did not see any merit in progressing with their proposal”. Revolution said it would continue its discussions with Stonegate.
Revolution shares
181.5p yesterday. rose 4.3pc to