Deltic Group confirms it is now 'not in a position' for Revolution Bars Group merger
The move leaves the field clear for Stonegate’s £101.5m cash bid for the group, which will be put to shareholders next Tuesday.
Deltic’s admission comes after an increasingly acrimonious exchange of statements between the key players.
Last week Deltic presented its proposed merger terms but later amended the section relating to a loan from its parent company, Ranimul after concerns were raised by Revolution and Stonegate.
Stonegate followed Deltic’s announcement with a statement from chairman Ian Payne, insisting Deltic’s plan was “highly conditional and uncertain as to deliverability and timing”. However, he was also forced to admit that Revolution’s largest shareholder, Artemis, had withdrawn support for Stonegate’s bid.
On Monday Revolution issued a lengthy response to Deltic Group’s proposed merger terms, insisting concerns remain and inviting Deltic to make a cash offer instead. The latter retorted with a stinging criticism of the Revolution board’s approach to negotiations, saying a “backdrop of hostility, negativity and ill-informed commentary” had resulted.
Full engagement needed
In a statement issued minutes before yesterday’s (10 October) 5pm deadline to make a firm offer, Deltic said that while the creation of an enlarged listed company was still its preferred option it was not possible without the full engagement and agreement of the Revolution board.
However, the group has left the door open to launch another bid if the Stonegate’s bid is rejected or lapses. It also said in yesterday’s statement that if the Revolution shareholder meetings are adjourned or the Stonegate offer price is increased, this could indicate a material change of circumstances.
