Revolution Bars rejects merger plan by nightclub operator Deltic

Revolution Bars Deltic Stonegate
15/08/2017 - 10:18
The Board of Revolution Bars Group plc has publicly turned down the chance to merge with Deltic, formerly Luminar, Britain’s biggest nightclub operator.

Instead, Revolution says it “continues to engage with Stonegate Pub Company Limited in connection with the possible offer, as announced on 31 July 2017”.

Stonegate is believed to be considering a 200p a share offer for Revolution. The bar operator’s shares were trading at 181p, up 7p, this morning.

In its proposal, Deltic said 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’.

Responding to the Deltic announcement of its interest, Revolution, headed by chief executive Mark McQuater, said: “The board confirms that it received a possible proposal from Deltic and thereafter met with Deltic.

“Based on these preliminary interactions, 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 Revolution and Deltic is not in the best interest of shareholders at this time.”

Revolution has a trading portfolio of over 60 bars located predominantly in town or city high streets which operate under the Revolution and Revolución de Cuba brands.

Deltic, which was acquired by shareholders out of the administration of Luminar, its predecessor firm, has 57 clubs operating under the PRYZM, Bar&Beyond, Steinbeck&Shaw, ATIK and Fiction brands.

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