Revolution, which operates five bars in Scotland (under both Revolution and Revolucion de Cuba brands) and over 60 UK-wide, cited concerns over “both the value and deliverability of the combination” of the two firms, adding that it believes that a merger of Revolution and Deltic “is not in the best interest of shareholders at this time”.
Deltic’s rejected offer comes after Revolution received a proposed takeover offer from Stonegate Pub Company late last month (July 31); the pubco proposed an acquisition of Revolution in its entirety at a conditional price of 200 pence per share.
Outlining its proposed merger with Revolution, Deltic described it as “a business with solid growth potential” and said it believed the merger of the two businesses could “transform the scalability of the enlarged group, provide scope for material synergies and enable the operational issues within Revolution to be better-addressed through Deltic’s management team taking responsibility for both businesses, creating a powerhouse group in its sector that can exploit further opportunities to both expand and consolidate the market”.
The Deltic Group operates 57 clubs across the UK, including Atik in Edinburgh, and Unique venues in both Aberdeen and Dundee.
Under the terms of The City Code on Takeovers and Mergers, The Deltic Group has until 5pm on September 12 to make a formal offer to Revoltion Bars Group.