The Dirty Martini operator had submitted a proposal for the bar group earlier this month, but in statement to the Stock Exchange on 28 May Revolution said it had rejected the proposal, describing it as being “incapable of being delivered”.
In a statement to the Stock Exchange today (30 May), Nightcap said it noted “with disappointment” Revolution’s statement, saying it had “invested significant time and resources” into a potential deal following encouragement from shareholders of both groups.
Revolution, which also owns the Revolucion de Cuba and Peach Pubs brands, launched a formal sale process on 10 April. In May it confirmed it held talks with Nightcap over a potential takeover deal.
It is currently seeking approval for plans to proceed with a £12.5m equity fund raise and earlier this month strongly recommended shareholders to vote in favour of approving its fundraising plans – or risk lose all of their investment in the company.
Nightcap said that its proposal would have replaced any such fund raise. “The board of Nightcap believes that the possible offer, if it had been implemented, would have seen Revolution Bars’ highly dilutive £12.5m fundraising replaced by a merger of the two businesses, allowing for Revolution Bars’ shareholders to suffer less dilution and achieve more value from their investment,” it said.
“The possible offer would have included a fundraising and the implementation of the restructuring plan, as already planned and outlined in the announcement by Revolution Bars in its announcement on 10 April 2024 to be followed by a combination of the Nightcap and Revolution Bars businesses as well as a sale of the Peach Pubs brand.”