Market uncertainty crashes deal
THE Greater Manchester operator of Revolution and Revolución de Cuba has ended talks over a potential acquisition of Scottish pubs due to market uncertainty following the result of the EU referendum.
AIM listed Revolution Bars Group, which operates 62 premium bars across the UK, was in talks to acquire four pubs in Edinburgh for £16m.
But in a recent stock market statement, the group said:”In light of the market uncertainty following the result of the EU Referendum, those discussions have been terminated and the Group will not be proceeding with the proposed acquisition at this time.”
The abandoned deal would have significantly boosted Revolution’s business in Scotland, where it already has three Revolution outlets, in Glasgow, Aberdeen and Edinburgh.
Revolution previously said the acquisition would significantly enhance the group’s earnings for the year ending 30 June 2017, and would enlarge the group’s portfolio of bars.
The deal was expected to be funded via new debt, a relatively small placing of new ordinary shares for cash and the issue of ordinary shares to the vendors.
The company also said it was continuing to trade well in the second half of the financial year ending 30 June 2016 following its strong performance in the first half. Its site opening programme for the financial year ending 30 June 2017 was also progressing ahead of schedule.