A bidding war has begun for the purchase of the Revolution Bars Group after Stonegate’s ‘firm’ offer of £101.5 million was deemed 'significantly undervalue' by nightclub operator Deltic.
Deltic, which runs 57 UK venues across the UK, initially made an offer for the company back in mid-August, following news of Stonegate’s approach. However, the Revolution board released a statement on August 15, stating it had met with the club operator and 'had concerns over both the value and deliverability of the combination and did not see any merit in progressing their proposal'.
But following Stonegate Pub Company’s firm offer of 203p per share on August 24, Deltic issued another statement saying it was considering 'a possible cash offer' with the intention to 'combine the business of Deltic and Revolution thereby capturing the benefit of synergies for Revolution shareholders'.
Peter Marks, Deltic chief executive, said: 'We are working hard on a more attractive alternative proposal having delivered a market leading performance in our last year as our results today demonstrate.'
It has promised to make further announcements in due course.
Meanwhile, the bidding war has caused shares in Revolution to climb 11% on August 24, to 206p, a figure above Stonegate’s offer price.