Nightclub operator Deltic Group is urgent forward with efforts to merge with Revolution Bars, although its proposals have already been rejected.
Revolution favours a £101.5m takeover provide by Slug and Lettuce proprietor Stonegate.
It has dismissed Deltic’s bid as “not in the perfect pursuits of shareholders at the moment”.
Now Deltic says it needs to bypass the administration and converse on to shareholders.
Beneath the phrases of Deltic’s merger proposal, current Revolution shareholders would personal 65% of the brand new firm, whereas shareholders in Deltic’s holding firm, Ranimul 1, would personal the remaining 35%.
Nevertheless, the merged group can be run by the present Deltic administration workforce.
Deltic mentioned it had been “upset” by Revolution’s “full rejection” of its proposals, which it mentioned represented “a compelling worth creation alternative”.
Deltic continues to be contemplating whether or not to make a agency money provide for Revolution, whereas Stonegate’s bid of 203p a share is already on the desk.
Beneath Metropolis takeover guidelines, Deltic should declare its intentions by 17:00 on 10 October.
Revolution, which owns greater than 60 Excessive Avenue bars, suffered a pointy drop in its share value in Could after it mentioned it was dealing with “well-published sector price headwinds”.
It mentioned its prices had risen due to the Nationwide Dwelling Wage, a brand new apprenticeship levy and above-inflation will increase in enterprise charges.
Earlier this week, Revolution mentioned its pre-tax earnings for the 12 months to 1 July had fallen by 29% to £three.6m.
Deltic mentioned in a press release that Revolution was “a terrific enterprise in its personal proper” that will profit from “a extra targeted and efficient administration workforce”.
It mentioned the bar chain’s current administration had been “gradual and defeatist” in responding to challenges.
The corporate added that it had decided that the proposal was “greatest shared straight with Revolution shareholders, as it’s they who in the end want to find out the way forward for Revolution”.
“The mixture of Revolution and Deltic would create a powerful enterprise of great scale and experience within the UK’s late-night market, with each entities exhibiting an analogous modus operandi,” Deltic mentioned.
“The city centre market stays fragmented and a mix of Deltic with Revolution can be properly positioned to penetrate their native markets alongside different operators of scale, similar to Wetherspoons, Stonegate and Mitchells & Butler.”