Club and bar operator The Deltic Group has announced its proposal to merge with Revolution Bars Group even though a takeover bid has already been made by Stonegate Pub Company.
The document from Deltic and its holding company Ranimul 1 proposes that the enlarged group would be run by its own management team, with the combined businesses benefiting from improved costs and financing.
In a statement today, it 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.”
However, the board of Revolution Bars Group continues to back the £101.5 million takeover bid from Stonegate which operates bars such as Slug and Lettuce, Yates and Missoula. Its proposal is due to be voted on by shareholders on October 17.
Revolution Bars Group issued a statement saying it noted the announcement of the merger proposal and would “provide its response in due course”.
It also emphasised that, under a ruling by the Takeover Panel, Deltic has until 5pm on October 10 to announce whether or not it has a firm intention to make an offer for Revolution.
Deltic operates 57 bars and clubs including those operating under the Pryzm, Bar&Beyond, Steinbeck&Shaw, Atik and Fiction brands. Click here to read Deltic’s full merger proposal document.