Revolution bidding war continues as Deltic issue new offer

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Drinks: Drinks
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Nightclub operator Deltic Group has reignited the bidding war for the Revolution Bars Group, by launching a new offer intended to woo shareholders.

With previous approaches rejected by Revolution’s board, in favour of a £101.5 million offer from Stonegate, Deltic is hoping its new proposal will persuade shareholders to back it.

Deltic has described the reasoning behind Revolution’s decision to favour Stonegate’s approach as ‘lack[ing]credibility’.

Deltic’s new offer would allow existing Revolution shareholders to own 65% of the new company, while Deltic’s holding company, Ranimul 1, would own the remaining 35%. However, the Deltic management team would steer the business.

The company claims the new, enlarged group should benefit from approximately £6.8 million of currently identified pre-tax cost synergies and approximately £0.9 million of pre-tax financing synergies.

In its statement this morning, Deltic said: ‘The combination of Revolution and Deltic would create a strong business of significant scale and expertise in the UK’s late night market, with both entities exhibiting a similar modus operandi. The town centre market remains fragmented and a combination of Deltic with Revolution will be well placed to penetrate their local markets alongside other operators of scale such as Wetherspoons, Stonegate and Mitchells & Butler.’

It will now engage actively with shareholders until 5.00pm on 10 October 2017 to discuss the proposal, at which point it will announce whether or not it intends to make a firm offer.

About Author

Claire Dodd

As a freelance journalist, Claire has written about pretty much any topic you can imagine, from which are the best sausages, to how to flood-proof your home. However, her writing on drinks began when she landed a job as a features writer for the Publican magazine in 2007. Adjusting to a lifestyle of sampling the best drinks from around the world was tough, but someone had to do it. Having left the title in 2011, today Claire focuses on drinks and travel writing for both consumer and trade titles. Aside from searching the globe for the best drinks, and the nicest spots to consume them, she also judges global brewing competitions and keeps an eye on the business moves of the on-trade.

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