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.