- Stonegate Pub Company said it has noted the announcement released by Ranimul 1 ("Deltic") today regarding a merger proposal and the subsequent response by Revolution.

The Company said in its statement:

"Stonegate has made a fully financed offer for the issued and to be issued share capital of Revolution at a price of 203 pence per share in cash (the "Cash Offer") which has been recommended by the Board of Revolution. Stonegate continues to believe that the Cash Offer presents Revolution shareholders with an attractive opportunity to receive cash for their Revolution shares at a significant premium to the undisturbed share price.

"The Court Meeting and General Meeting in relation to the Cash Offer will take place on 17 October 2017 and the Board of Stonegate looks forward to completion of the transaction and to welcoming new colleagues at Revolution to the enlarged Stonegate group. Stonegate expects the Scheme to become effective on 23 October 2017 and notes that the Cash Offer has no conditionality aside from the Revolution shareholder vote and the sanction of the Court. Revolution shareholders are encouraged to lodge their votes in favour of the Cash Offer as soon as possible."

Commenting on the Cash Offer, Ian Payne, Chairman of Stonegate, said:

"The Deltic Proposal does not offer any cash to Revolution shareholders and is highly conditional and uncertain as to deliverability and timing. Furthermore, the Deltic Proposal also appears to include the repayment of a £22.3m loan to Deltic shareholders to be funded by leveraging the Revolution balance sheet. At a time when the sector is facing headwinds from cost inflation, labour costs, rate rises and consumer uncertainty, we believe that Revolution shareholders will prefer the certainty of Stonegate's cash offer."

At 1:24pm: [LON:RBG] Revolution Bars Group Plc share price was -2.62p at 207.88p

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