Revolution rejects Nightcap offer, still open to deals

Greater Manchester-based Revolution Bars Group plc said on Tuesday it rejected an acquisition by Nightcap plc, saying the rival group’s plan was “incapable of being delivered.”

Revolution, which operates premium bars and gastro pubs under the Revolution, Revolucion de Cuba and Peach Pubs brands, said it had held talks with Nightcap, one of the UK’s biggest bar operators, but had rejected the takeover last week.

The Nightcap proposal would have required Revolution to proceed with its restructuring plan, but not an existing fundraising of £12.5 million, which it announced in April. 

“There were a number of challenges to the delivery of the Nightcap proposal, which was a highly conditional proposal and which was subject to multiple equity fundraisings by Nightcap, assumptions regarding the support of the company’s and Nightcap’s respective lenders, material due diligence,  as well as significant time, material cost and potential untested legal and procedural issues,” Revolution said in a statement.

Revolution said the Nightcap proposal would have required two separate equity fundraisings to successfully complete, compared with one fundraising which it said had already been secured by the company.

The board of Revolution “remains open to considering any future proposal from Nightcap or any other party, following completion of the restructuring plan, at which time the company would have been recapitalised,” Revolution added.