Rival group rules out bid for embattled Revolution Bars
Hospitality company Nightcap has pulled out of a potential bid for embattled nightlife chain Revolution Bars.
This comes after Revolution Bars announced earlier this week that it had rejected a non-binding proposal from Nightcap – which operates brands such as The Cocktail Club and The Adventure Bar Group – for a share-for-share offer.
Nightcap had submitted the proposal earlier this month, which it said presented ‘an improved outcome for Revolution Bars’ shareholders and a significantly de-leveraged position for its creditors’.
The group said it believes that the offer, had it been implemented, would have seen Revolution’s £12.5m fundraising, announced in April, replaced by a merger of the two businesses. Nightcap said this would allow Revolution Bars’ shareholders to suffer less dilution and achieve more value from their investment.
It would also have included a fundraising and the implementation of a restructuring plan already set out by Revolution, to be followed by a combination of the two businesses and the sale of Revolution Bars Group’s Peach Pubs brand.
Nightcap said it respects that the board of Revolution Bars wishes to pursue a different outcome, and as a result confirmed that it does not intend to make an offer for the group.
In March, Revolution Bars said that it was “exploring all the strategic options available to it”, including restructuring plans for part of the group or a potential sale.