2nd May 2024 11:56
(Alliance News) - Nightcap PLC on Thursday confirmed talks with Revolution Bars Group PLC, which could result in the former making a takeover offer.
Revolution Bars shares rose 8.1% to 1.57 pence each on Thursday morning in London, while Nightcap shares were 8.4% higher at 4.50p each.
Revolution Bars is a Manchester-based bar group, which operates the brands Revolution and Revolucion de Cuba, while Nightcap is a London-based owner of the Cocktail Club, Adventure Bar and Barrio Familia chains.
Nightcap said its board "believes that assessing the options is in line with the company's ambition to create the UK's leading bar group by consolidating the drinks-led premium bar segment of the UK hospitality sector through strategic acquisitions. The board considers that certain brands of Revolution Bars could be an excellent addition to the company's existing portfolio of brands."
Nightcap has until May 30 to announce a firm intention to make an offer or to announce that it does not intent to make an offer. The company on Thursday emphasised that it did not announce either.
"There can be no certainty that any firm offer will be made for Revolution Bars Group, nor as to the terms on which any firm offer might be made," Revolution Bars said.
Sky News on Wednesday evening reported Nightcap was among the players in UK nightlife scene interest in buying all or part of Revolution Bars. Rekom Group, the owner of the Pryzm brand, is also interested, Sky News reported.
On Wednesday morning, Revolution Bars said it raised GBP12.5 million through a placing, subscription and open offer, announcing it will issue a total of 1.25 billion shares at the price of 1 pence per share.
In April, Revolution Bars announced the fundraise amid a restructuring plan that could see the business sold.
Without the additional funding, and cost savings delivered through a proposed restructuring plan, Revolution Bars said it would face liquidity pressures from the first quarter of 2025 onwards.
In addition, the company had said it had launched a formal sale process to see whether a sale of the company would provide a more beneficial outcome for stakeholders than the restructuring.
By Tom Budszus, Alliance News slot editor
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