Stonegate Pub Company’s proposed £101.5m acquisition of Revolution Bars Group, has been placed in doubt after just 54.72% of proxy votes from the latter’s shareholder were cast in favour of the deal.
Responding to the announcement yesterday, Stonegate said it was “considering its options” and that a further announcement regarding its intentions would be released in “due course.” The remaining shareholders are due to vote on the deal today.
With proxy votes representing 52.36% of total outstanding shareholder votes, this means that 23.36% of voters so far have voted against the bid. Only 28.16% of total votes cast have been in favour.
When Stonegate made its original 203p per share cash offer for RBG in August, it required at least 75% of all shareholders to vote in favour of the deal.
In order to achieve this it would require almost all remaining votes to be in favour of the deal.
Stonegate, in response to the vote, said that it RBG’s share price has fallen 4.18% so far today to stand at 189p.
If Stonegate withdraws or changes its offers this could open the door for Deltic Group to resume its approach for Revolution. However, if the deal is rejected by shareholders today, both suitors will be unable to bid for the next six months unless a third approach is made for Revolution.
