Urbium rejects Regent Inns bid offer

Intense media speculation about a potential bid for late night operator Urbium has forced the group to admit it had received - but rejected - an offer from Regent Inns​.

In a statement Urbium said it had received an "unsolicited indicative proposal" from Regent to buy the company, but that this had been rejected.

The Regent share based proposal had had a number of conditions, Urbium said, and "significantly undervalued" the company.

It added the Urbium board was of the view that there was "little strategic fit between the two very different businesses".

Urbium chairman John Conlan said: "Urbium has demonstrated its ability to deliver value to its shareholders and is committed to doing so.

"The board believes that Urbium is a strong company and well-positioned for future growth."

Regent Inns confirmed it had approached Urbium with a proposed offer at 820 pence per share, made up of new Regent shares to be issued to Urbium shareholders, "subject to an option to receive a cash alternative representing 30 per cent of the value of the offer, equivalent to 246 pence per share".

The offer was conditional on Regent being able to conduct a due diligence review of Urbium.

Announcing the background to its bid, Regent said it believed there was "a compelling strategic rationale for combining the two businesses, which would create a group with three strong market leading brands and a portfolio of premium West End and City bars under the same ownership and give rise to significant synergies through the removal of duplicated costs and purchasing benefits".

Hinting at the possibility of an increased offer, Regent said it was considering its position and would make a further announcement "in due course".