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Rival offers could land city bar with new owner

Eating Out al-fresco at Revolution, Aberdeen.



Picture taken by EMMA SPEIRS.



Taken 10/06/2013
Eating Out al-fresco at Revolution, Aberdeen. Picture taken by EMMA SPEIRS. Taken 10/06/2013

Aberdeen’s Revolution bar may soon be changing hands as part of a £100million-plus deal.

It is one of more than 60 sites in the Revolution and Revolucion de Cuba chains at the centre of a takeover battle.

Slug And Lettuce owner Stonegate said yesterday it had struck a deal to acquire Revolution Bars Group (RBG) for £101.5million.

Rival Deltic Group swiftly announced it was also “evaluating a possible cash offer”.

RBG has accepted Stonegate’s offer, having earlier this month rejected overtures from Deltic – one of the UK’s biggest nightclub operators – to merge the two firms.

Keith Edelman, non-executive chairman, RBG, said the Stonegate offer delivered “considerable opportunities” for the business as a whole.

But Deltic said it had been granted access to RBG’s accounts, which may lead to it tabling another proposal.

Deltic added it continued to believe that Stonegate’s offer of £2.03 a share “significantly undervalues” the business.

A statement from RBG said: “Deltic has not made an offer to acquire the company and has provided no detail as to how any such offer would be financed.

“Nevertheless, as a potential offer, Deltic has been provided with access to due diligence materials by the company.”

Stonegate is the fourth largest managed pub company in the UK by sites.

Revolution bar and restaurant in Belmont Street, Aberdeen, is one of three Scottish sites operated by RBG. The others are in Edinburgh and Glasgow.

The Ashton-under-Lyne-based group has been going through a difficult spell and issued a profits warning in May that sent shares tumbling.

It has previously said it is facing “well-publicised sector cost headwinds” which have also hit its rivals. These headwinds include the impact of the living wage and an above-inflation increase in business rates.

Deltic’s estate consists of 57 clubs, including those operating under the PRYZM, Bar & Beyond, Steinbeck & Shaw, ATIK, and Fiction brands.