Revolution Bars Share Discussion Threads

[spot1034] 18/10/2017 13:10

That's what happens when you don't act (or aren't seen to be acting) in the best interest of your shareholders. Presumably this is a result of his refusal to engage seriously with Deltic.

[turbocharge] 18/10/2017 11:15

DIRECTORATE CHANGE

Revolution announces that Mark McQuater, Revolution's CEO, has resigned from the Board and will be leaving the business with immediate effect.

Keith Edelman, Revolution's Chairman, will assume the role of Executive Chairman until a suitable replacement for Mark McQuater has been found. Further updates will be made in due course.

Commenting, Keith Edelman said:

"On behalf of the Board, I would like to thank Mark for his contribution to the success of Revolution. The business and brands have grown and developed over his four and a half year tenure as CEO and the business is well positioned for its next period of growth. We wish him well for the future."

[spot1034] 18/10/2017 08:21

Yes, interesting comments from Paul Scott, particularly that he thinks it unlikely that RBG will still be an independent company this time next year, which I agree with. There is still a chance that Deltic could come back with a revised proposal, and maybe given the extra time they now have they might even be able to put together a cash offer which is what the board wanted them to do all along.

[fozzie] 18/10/2017 08:01

Paul Scott on Stockopedia is worth reading on RBG. He says buying at 150 or below would be irresistible and that presumably the fund managers who rejected 203 would also be keen to load up on shares in a business that they clearly feel is undervalued. It will be interesting that's for sure. Good luck all.

[fozzie] 18/10/2017 07:50

Stonegate were rejected at 203 because shareholders felt the bid undervalued the companies potential. There may well be some fall off as traders exit but back to 110, I doubt it. I sold half my shares at 209 last week but have kept that money to one side and will use it to add further here.

[qs99] 18/10/2017 07:45

£1.10 is clearly nonsense, but it may drift IMO to around £1.50-60 without the offer, it was much lower before the offer, but it has had a decent update since. so IMO the takeover premium will dissipate in time.....DYOR but will hold on before dipping toe in again as sold out on back of no deltic offer....

[gabble ratchet] 18/10/2017 07:33

110p! Why? It's considered undervalued at 203p - please explain.

[blackbear] 17/10/2017 20:54

Can see this back at 110p pretty sharpish, why were the BOD so desperate to sell up

[panic investor] 17/10/2017 18:49

I always sell on first news of takeover - bank the profits and make more elsewhere from those profits - simples

[jeffian] 17/10/2017 16:20

Insti's get it wrong too, you know! They might just have overplayed their hand, hoping that withdrawing their support from the agreed Stonegate bid might elicit a further bid from Deltic and force Stonegate to raise their cash offer. The weakness, as I see it, is that Deltic were never a credible bidder - they didn't have the cash and any 'merging' of the businesses would be far more beneficial to Deltic than Revolution. In the absence of a more realistic counter-bidder, why should Stonegate be bullied into offering more? Bluff called, IMHO. The share price won't collapse completely because the company is now seen to be 'in play', but whether a 3rd party appears to outbid Stonegate remains open to doubt. The bid may have been 'cheap' but it was recommended by the Revolution board, so it can't have been that far off the mark. PUB was also sold on a recommended bid at around half of NAV.

[spot1034] 17/10/2017 16:04

This wasn't small shareholders voting against the deal, it was obviously rejected by some of the big insitutional investors and I very much doubt they did it in the hope that they can keep these shares on their books long term at a lower price than the offer which was on the table. It makes you wonder if they know there's someone else out there poised to make a move if the other two bids failed. And the strength of the share price during the day today seems to indicate that this might not be over yet.

[exbroker] 17/10/2017 15:54

Deltic can come back if it is agreed by the management, then Stonegate are free to bid again as well. How the advisers managed to screw this up is remarkable, whoever decided to make the offer Final and try to frighten the shareholders into voting it through needs firing.
Stonegate had a chance to buy the company on an EBITDA of less than 4 if you take out the costs they would save and screwed it for about 15p or less. They will now have to wright off the costs against this year’s profits.
What credibility now the Revolution board???

[psmith1110] 17/10/2017 15:43

If I’m reading things correctly, as Stonegate’s offer has now lapsed, Deltic could return with an offer as they are no longer prohibited from doing so for 6 months ? And if Deltic or a 3rd party do so this would not preclude Stonegate submitting another counter offer ? Am I correct ?

[waspfactory] 17/10/2017 14:52

Indeed Spot, I remember a patronising Evil Doctor fella telling me that it would definitely, without doubt return to 125p and I was living in a utopian world suggesting that it might not.

[funkmasterp12] 17/10/2017 14:50

Want in but that's a horrible spread.

[spot1034] 17/10/2017 14:45

So much for predictions of the share price crashing!

[waspfactory] 17/10/2017 14:22

Too right Dr. Know - Both Artemis and Deltic clearly think that RBG is undervalued at 203p, that's good enough for me to hold and possibly buy more at 180p.

[dr know] 17/10/2017 13:27

If Stonegate were prepared to offer 203p won't they be buying as many shares as they can in the market below that price so that when they come back for another go they'll be less reliant on other shareholders ?

[turbocharge] 17/10/2017 13:24

Since we are coming up with valuations from thin air, I propose the fair value to be 250p

[barnetpeter] 17/10/2017 13:06

I think the question is what is the business now worth. Management and staff will have been distracted by this bid and thinking about their own positions rather than concentrating on selling or watching costs. That's just human nature.

Are other bids likely? I don't know.


I think approx. 150p is now a fair price.

[spot1034] 17/10/2017 13:06

Looking at the rules set out in post#1083 - as the Stonegate offer has now lapsed, if the company wishes to engage further with Deltic, they now can. Is that correct? I appreciate they might not be too keen, but there may be pressure from the big shareholders such as Artemis. Then if Deltic come up with a new proposal are Stonegate able to come back in those circumstances? Of-course there is also the possibilty that another party might have been watching this and as the coast is now clear they could come forward with their own offer.

[jeffian] 17/10/2017 12:59

"not able to come back once they had said their existing offer was final"

With a higher offer. May not be over yet.

[spot1034] 17/10/2017 12:46

Yes, a lesson to be learned, and I confess I had not been aware of the rule that Stonegate were not able to come back once they had said their existing offer was final. However I suspect we are not as upset at this outcome as either of the bidders. Somehow two separate companies who know the sector well have put a value on this company which is considerably greater than where the shares now trade, yet due to their rather poor handling of the situation both have somehow let it slip through their fingers.

However, we live to fight another day. This isn't a situation where we have gambled and lost everything. There is plenty of value here and if the shares don't pick up it probably won't be long before there is a further attempt to buy the company. In the meantime there is a decent dividend already declared and payable in early December.