SHARES in Revolution Bars Group leapt by more than four per cent after it rebuffed a counter merger offer from Deltic Group, the nightclub operator, writes Scott Wright.

Revolution, led by Ayrshireman Mark McQuater, said it had concerns over the “value and deliverability” in Deltic’s proposal. The bar operator added that it remains in talks over a £100 million takeover bid tabled by Stonegate Pub Company, owner of the Walkabout and Slug and Lettuce chains, on July 31.

Deltic responded by saying the Stonegate offer of 200p per share would be a “disappointing outcome” for shareholders. It claimed the “opportunistic” offer valued the business at the same level it had at its flotation in 2015 – despite the two years of investment made in expanding the Revolution group since.

Revolution, which runs Revolution vodka and Revolucion de Cuba rum bars in Glasgow, Edinburgh and Aberdeen, has seen a sharp recovery in its share price since Stonegate tabled its offer. Shares closed up 7.5p at 181.5p, having plunged as low as 105p on July 10.

It warned in May that “well-publicised sector cost headwinds”, including business rates, would be higher than anticipated this year. However in July it reported that total sales had risen 9.2 per cent to £130.4m in the 52 weeks to July 1.