Two-way battle to take control of struggling club group Revolution
TWO FIRMS involved in a struggle for control of troubled Revolution Bars have tabled fresh proposals for the nightclub operator.
Slug And Lettuce owner Stonegate said on Thursday that it had struck an agreement to acquire Revolution Bars in a £101.5m deal, but shortly after rival Deltic Group said that it was also “evaluating a possible cash offer” for the group.
Revolution has accepted Stonegate’s offer and earlier this month rejected overtures from Deltic, one of Britain’s biggest nightclub operators, to merge the two firms.
Keith Edelman, non-executive chairman of Revolution, said that he believes the Stonegate offer provides “considerable opportunities” for the business as a whole.
Nevertheless, Deltic said that it has been granted access to Revolution’s accounts, which may lead to it tabling another proposal. Deltic added that it continues to believe that Stonegate’s offer, at 203p a share, “significantly undervalues” Revolution.
But Revolution said in a statement: “Deltic has not made an offer to acquire the company and has provided no detail as to how any such offer would be financed.
“Nevertheless, as a potential offeror, Deltic has been provided with access to due diligence materials by the company.”
Stonegate is the fourth largest managed pub company in the UK by sites. Revolution has had a difficult time of late and issued a profit warning in May that sent shares tumbling.
The Ashton-under-Lyne-based firm, which owns more than 60 Revolution and Revolucion de Cuba high street bars, has said it is facing “well-publicised sector cost headwinds” that have also hit its rivals.