Deltic Group pulls out of ownership race for Revolution Bars

11/10/2017 - 09:10
In the latest installment of the battle to buy Revolution Bars Group between Stonegate Pub Company and The Deltic Group, the latter has confirmed that it does not intend on making a cash offer or new merger proposal.

In a company statement, Deltic said "it is not possible to implement the revised merger proposal without the full engagement and agreement of the directors of Revolution which, as at the date of this announcement, has regretfully still not been forthcoming."

Nightclub operator Deltic had previously proposed an all-share merger that would see Revolution own 65% of the combined business and Deltic 35%.

Revolution warned shareholders yesterday (10 October) of “significant areas of uncertainty” surrounding Deltic’s proposed merger, advising them to vote In favour of Stonegate instead.

The Revolution reported that it still did ‘not believe that the revised proposal would create shareholder value for Revolution's existing shareholders in excess of the certain and immediate value represented by Stonegate’s offer.

Stonegate’s offer values Revolution it at £101.5m, which represents a premium of 62.4% on Revolution’s share price of 125p as it stood on the eve of Stonegate’s bid.

Revolution shareholders would get 203p in cash per share.

Stonegate is the fourth largest managed pub company in the UK in terms of number of operating sites, trading from 689. It began trading in 2010 following the acquisition of 333 pubs from Mitchells & Butlers.

Revolution has a trading portfolio of over 68 bars in the UK, located predominantly in town or city high streets.

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