Deltic leaves door open for Revolution merger
Just minutes before a 5pm regulatory deadline, Deltic issued a stock exchange announcement stating that it does “not intend to make a cash offer” for Revolution.
Deltic, Britain’s biggest nightclub operator, has stopped short of tabling a cash offer for Revolution Bars, but signalled that it is still interested in a merger as a takeover tussle with rival Stonegate continues.
Just minutes before a 5pm regulatory deadline, Deltic issued a stock exchange announcement stating that it does “not intend to make a cash offer” for the Revolution.
Deltic is still pushing for an all-paper merger that would see embattled Revolution own 65% of a combined entity and Deltic the remaining 35%, creating a bar giant with annual sales of more than £270 million.
But Revolution has already rejected the advance, favouring instead a takeover offer by Slug And Lettuce owner Stonegate, which struck an agreement in August to acquire it in a £101.5 million deal.
Deltic said in a statement: “If the Stonegate offer is withdrawn or lapses and shareholders wish the Revolution board to explore the revised merger proposal, shareholders should encourage the Revolution board to engage with Deltic at that point in time.”
Revolution, which owns more than 60 Revolution and Revolucion de Cuba high street bars, has said of Deltic’s approach that it would not create shareholder value.
For its part, Deltic has accused Revolution of failing to gain a “genuine understanding” of Deltic, and said that it has created a backdrop of “hostility, negativity and ill-informed commentary.”
Shareholders in Revolution are due to vote on the Stonegate deal next week.