Nightclub operator Deltic has revealed its terms for the merger it continues to pursue with Revolution Bar Group.
Deltic and its holding company Ranimul proposes Revolution shareholders would own 65% and Ranimul shareholders 35% of the enlarged group, which would be run by the Deltic management team, including Bob Brannan, Peter Marks and Alex Millington, current Deltic chairman, chief executive and group finance director, respectively.
Deltic said it has been "disappointed" by Revolution's level of engagement. The company initially rejected Deltic's advances outright and agreed a £100m takeover offer from Stonegate in August, however Revolution is now also in talks with Deltic. Revolution's shareholders are expected to vote on the offer on 17 October, which Deltic asserted "significantly undervalued" the business.
Deltic added: "Deltic strongly urges Revolution shareholders to vote against the Stonegate offer and to encourage Revolution's board to progress Ranimul's merger proposal to allow it to be formally presented to, and voted on, by Revolution shareholders."
Deltic has until 5pm on 10 October to announce a firm intention to make an offer for Revolution under Rule 2.7 of the City Code on Takeovers and Mergers or announce that it does not intend to make an offer.
Earlier this week Revolution reported a 1.5% rise in like-for-like sales due to the launch of five venues, which contributed to a growth in adjusted EBITDA to £15.1m last year. The company operates more than 60 bars across the country under the brands Revolution and Revolución de Cuba.
Deltic has a portfolio of 57 clubs and bars throughout the UK across brands including Bar&Beyond, ATIK and PRYZM.
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