Stonegate makes conditional proposal to acquire Revolution Bars Group

31-Jul-2017 - Last updated on 01-Aug-2017 at 08:50 GMT

Ongoing discussions: Stonegate makes bid to acquire the 68-strong group

Revolution Bars Group has confirmed it has received a conditional proposal from Stonegate to acquire the company, which values it at c£100m.

Stonegate’s proposed bid is on the basis of an offer price of £2 per share. Revolution has 50,000,000 ordinary shares in issue.

The two companies are in ongoing discussions over the details of the proposal and Stonegate is undertaking its due diligence review.

Stonegate has until 28 August to make a firm offer for the 68-strong group.

Rumours of a bid for Revolution have circulated since a profit warning in May, which saw its share price fall almost 40% in a day.

Its most recent update showed total sales for the 52 weeks to 1 July up 9.2% to £130.4m with like-for-like sales growing 1.5%, down from the 1.7% reported after 44 weeks.

Stonegate, which completed a £595m refinancing earlier this year, has boosted its estate with the acquisition of the 30-strong Intertain estate in December, the three-strong Large Bars estate in May and individual sites from JD Wetherspoon and Faucet Inn among others.

It is also believed to one the parties to have shown an interest in acquiring Be At One, which was placed on the market earlier this year.