Deltic announces proposed terms for Revolution merger

Further to the announcement made by the Deltic Group on 20 September 2017, Deltic and its holding company Ranimul 1 Limited have today announced its proposed terms for a merger with Revolution Bars Group.

The Merger Proposal shows that existing Revolution shareholders would own 65% and Ranimul shareholders 35% of the merged group. The merged group would be run by the current Deltic management team.

Deltic stated that the merger would offer the opportunity to accelerate Revolution's strategy set out at the time of its IPO.

The company said the merged group would:
· Combine the expertise of Deltic, as the leading late night entertainment-led operator in the UK, with that of Revolution, as one of the leading premium branded daytime and evening bar and food operators, to create a market leading business to provide great customer experiences and in so doing create the opportunity to drive a higher per customer spend

· Increase the scale and breadth of the target market for customers. Typically Deltic customers are a little younger than Revolution customers who in turn are a little younger than Revolución de Cuba customers and this, combined with a high degree of estate overlap, will create opportunities to improve the effectiveness of customer promotions and marketing while limiting concerns over cannibalisation

Deltic will engage with shareholders from the date of this announcement until 5.00 p.m. on 10 October 2017 to discuss the Merger Proposal.

Revolution Bars Group has acknowledged the proposed terms and stated: “Shareholders are advised there is no certainty the merger proposal would be likely to lead to a transaction that could be announced and completed or Deltic will make an offer for the company.

'Deltic must, by 5pm on 10 October, either announce a firm intention to make an offer for Revolution under rule 2.7 of the City Code on Takeovers and Mergers, or announce it does not intend to make an offer for Revolution.'