Revolution bidding war continues as Deltic issue new offer

Claire Dodd

Claire Dodd

05 October 2017

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.

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