Good morning, it's Paul here!

I have a diary note this week, written this time last year, advising the future me to book a holiday this week, as it's usually very quiet for results & trading updates. Accordingly, I'm jetting off to Spain tomorrow, just for 4 nights, having found a deal for only £300. Our Graham has very kindly offered to hold the fort here, so that I can relax on the beach for the rest of the week.

I'm hoping that newspaper reports of 8 hour delays to check passports at Barcelona airport may be false. It amused me that right-wing newspapers reported that the delays were due to industrial action. Whereas pro-remain journalists reported that the delays were deliberate punishment by Spain for the UK having voted for Brexit!

It all reinforces my belief that human beings are fundamentally irrational, and simply believe what they want to believe. That creates wonderful opportunities in financial markets, as many shares are frequently priced wrongly due to investors being so irrational.

Talking of which, the situation at Revolution Bars (LON:RBG) has just got a bit more interesting today, so let's start with that.

Revolution Bars (LON:RBG)

Share price: 181.6p (up 4.4% today)
No. shares: 50.0m
Market cap: £90.8m

(at the time of writing, I hold a long position in this share)

Merger proposal - there are 2 announcements relating to RBG today. The first RNS was issued by another company, Deltic Group, suggesting a merger of their company with RBG. That was followed by a response from RBG, which I will cover below.

Deltic Group is the phoenix company which rose from the ashes of overly-indebted nightclub operator Luminar, which went bust in 2011.

Deltic starts off its announcement today by describing itself like this;

Deltic ( is the leading specialist late-night operator in the UK. Since it was acquired by its current shareholders out of the administration of Luminar plc, its predecessor firm, in 2011, management has refurbished the majority of its estate of 57 clubs, including those operating under the PRYZM, Bar&Beyond, Steinbeck&Shaw, ATIK, and Fiction brands.

It is a highly cash generative and growing business of similar size to Revolution, its major competitor in the UK late-night market. Trading…

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