Revolution Bars (RBG) has received its first formal takeover bid. Stonegate Pub Company has made a 203p-a-share cash offer – up from the 200p it had initially suggested – valuing the company at about £102m.
While this represents a 62.4 per cent premium to the 125p closing price the day prior to the offer period, shares have since recovered to the level they were at prior to May's profit warning. Management at Revolution said the offer was fair and reasonable.
This response is in contrast to management’s reaction to Deltic’s proposed all-share merger, which it deemed not to be in the best interests of shareholders. Deltic said Stonegate’s offer “significantly undervalues” Revolution and plans to formalise its possible merger proposal and include an analysis of synergies that could arise. It is also considering coming back with a cash offer of its own.
