Deltic Group loses Revolution Bar deal after talks
The bar company said: “Following a period of engagement and due diligence, the board has concluded that a transaction with Deltic would not be in the best interests of the company’s shareholders. The company will continue to focus on delivering the positively received strategy outlined in its preliminary results announcement made on 2 October 2018.”
The results outlined a “disappointing year” for the group including a £3.6m operating loss, for the year ended 30 June 2018.
The loss was in stark contrast to the £5.1m operating profit posted the previous year and was in part driven by “well-documented levels of corporate activity” – as Revolution had found itself the focus of a takeover battle between rivals Deltic and Stonegate during the first half of the reporting period before turning its own eyes on Deltic.
Following the announcement Deltic said: “It was disappointing that such talks, that were only ever at an early stage, were leaked and that the decision not to proceed comes as little surprise.”
The bar group, which is a shareholder in Revolution, went on to reiterate its belief that a there is a “compelling financial case for a merger between the two companies”.
Deltic, which runs 57 nightclubs and bars, is Revolution’s major competitor in the late-night market.
Article credit: The Caterer