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Revolution Bars suitor leaves empty handed as investors reject ?100m bid

Shares in Revolution Bars dropped as much as 8pc after a second potential suitor in two weeks was left unable to secure a deal.
Stonegate, the owner of the Slug & Lettuce chain, had bid 203p a share for its rival, valuing the chain at ?100m. But it failed to secure shareholder support for its cash offer, sending the target’s shares down to 176p.
Owners of just 61pc of Revolution's shares voted in favour of the Stonegate bid at the General Meeting for shareholders while just 46pc of shareholders approved of the deal at a separate Court meeting held by the company to allow investors to express their view on the deal.
To be successful, the bid needed 75pc of shareholders to vote in favour.
Revolution Bars Group share price
Stonegate made its original offer in July, only for the bid to be gatecrashed by nightclub owner Deltic the following month with a proposal to merge with Revolution and remain listed.
Deltic retreated last week after failing to make a formal offer for Revolution by the deadline of October 10. But the company has now said it would not have to wait the statutory six-month period to make another offer if the board of Revolution agreed to talks with the company or another bidder enters the fray.
Major Revolution investor Artemis withdrew its non-binding support for the Stonegate bid earlier this month and this may have been a key factor in its failure.
 Ian Payne, Chairman of Stonegate, said it thought its offer had been an attractive one but "respect the shareholders' decision and wish them all the best".
Revolution’s board, which would have stood down had either bid been successful, said it was now “confident regarding the underlying strength of the Revolution business”. The chain has 67 sites, 14 under the Revolucion de Cuba brand.
Stonegate’s bid came shortly after Revolution shares plunged 45pc in May after the chain admitted costs from factors such as the National Living Wage were rising faster than anticipated.
Revolution Bars suitor leaves empty handed as investors reject ?100m bid

Revolution boss Mark McQuater 
This month it posted a 45pc fall in pre-tax profits to ?3.6m in the year to July 1 on the back of onerous leases and property impairments.
Revolution’s board added that the company boasted 16 consecutive quarters of like-for-like sales growth and that the team was now able to “focus on running the business starting with the successful delivery of the important Christmas trading period”.
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