REJECTION

Nightclub operator Revolution Bars Group, which has sites in Edinburgh, Glasgow and Aberdeen, has rebuffed a merger proposal from rival Deltic Group, saying it is “not in the best interest of shareholders at this time”.

Revolution is already the subject of a £100 million takeover tilt from Slug And Lettuce owner Stonegate Pub Company at 200p per share.

But Deltic, one of Britain’s biggest nightclub operators whose venues include Atik, formerly Cav, in Edinburgh’s Tollcross, said it believes “that if a firm offer by Stonegate is made, and is recommended by the Revolution board, it would be a disappointing outcome after two years of roll out and investment to merely return to its shareholders the same value of the business as at its 2015 IPO”.

Instead, it has tabled an alternative proposal involving an all-share merger, which would see a combined firm continue to be listed on the London Stock Exchange.

Deltic said such a deal would create “a powerhouse group” and could be more appealing

0 Mark Mcquater is CEO of Revolution, which is facing ‘cost headwinds’

“The board had concerns over both the value and deliverability of the combination and did not see any merit in progressing their proposal”

REVOLUTION BARS GROUP to Revolution shareholders than the Stonegate offer.

“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,” the group stated. However, Revolution, which issued a profit warning in May that sent shares tumbling, has rejected Deltic’s overtures.

The Ashton-under-lynebased firm, which owns more than 60 Revolution and Revolucion de Cuba high-street bars, said that based on initial talks with Deltic, “the board had concerns over both the value and deliverability of the combination and did not see any merit in progressing their proposal as the board believes that a combination of Revolutionanddelticisnotinthebest