Battle for the bars
Revolution Bars has rejected a merger proposal from rival nightclub operator Deltic Group.
In a statement Deltic Group, whose brands include Pryzm and Steinbeck & Shaw, said the merger of the companies would create a ‘powerhouse group in its sector.’
Revolution Group said in a follow up statement said the merger was “not in the best interest of shareholders at this time.”
“The Company continues to engage with Stonegate Pub Company Limited in connection with the possible offer, as announced on 31 July 2017,” they added.
Stonegate who own Slug and Lettuce have been in talks about a £200m takeover since it was announced in July.
In their statement Deltic said Stonegate’s bid was an ‘opportunistic offer’ after Revolutions recent poor share price and that “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.”
Revolution suffered a sharp drop in its share price in May after facing “well published sector cost headwinds”.
Deltic said it was disappointed by the rebuttal and believes that Revolution shareholders should be aware of alternatives to the possible Stonegate offer.
Stonegate now has until 28 August to make a formal bid for the company.