The owner of the Slug and Lettuce bar chain will on Thursday take a decisive step towards a £100m takeover of rival operator Revolution Bars.
Sky News has learnt that privately-owned Stonegate Pub Company has agreed the terms of a 203p-a-share offer for Revolution, which is listed on the London Stock Exchange.
The proposal is said to have the backing of Artemis, Revolution’s largest shareholder, according to a fund management source.
A recommended offer is expected to emerge several days before a deadline set by the Takeover Panel, and less than a month since Stonegate’s interest was made public by its target.
Revolution, which will be valued at roughly £100m by the Stonegate proposal, has endured a rocky period in recent months, ?with a warning in May about the cost of the national living wage and apprenticeship levy sending its shares plunging.
The company operates more than 60 vodka and cocktail bars across the UK, and would add another national brand to a portfolio that already includes Walkabout and Yates if the deal is completed.
Stonegate is itself majority-owned by TDR Capital, the private equity firm.
Last week, Revolution said it had rebuffed rival takeover interest from Deltic Group, a nightclub operator, which claimed Stonegate’s move was “opportunistic”.
Barclays is advising Stonegate on the deal, while Revolution is being advised by Numis.
Neither side could be reached for comment.
Source: Sky News