Revolution confirms ‘exploratory’ meeting with Nightcap over possible sale - updated

In a statement  to the London Stock Exchange today (2 May), the beleaguered bar group said it held an 'exploratory meeting' with the Dirty Martini and Barrio Bars operator regarding 'a range of possible transactions'.

It comes after Sky News​ reported yesterday (1 May)​​ that Rekom and Nightcap have expressed interest in buying the group.

A number of private equity firms are also said to have been planning to submit offers ahead of a deadline set by advisers to Revolution on Wednesday.

Revolution Bars said: “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.

“Nightcap is required, by no later than 5.00 p.m. (London time) on 30 May 2024, being 28 days after today’s date, to either announce a firm intention to make an offer for Revolution Bars Group…or announce that it does not intend to make an offer. This deadline can be extended with the consent of the Takeover Panel in accordance with Rule 2.6(c) of the Code.”

A further announcement will be made as and when appropriate.

Earlier this week, Revolution announced that it had raised gross proceeds from fundraising of approximately £12.5m.

The investment is part of previously announced plans back in April​​ to raise new funding that would be used to fund the implementation of a restructuring plan that could see the group offload up to 18 sites.

At the time the group said that without the additional funding and the cost savings delivered through the restructuring plan it would face liquidity pressures from the first quarter of next year.

The fundraising remains conditional on the approval by shareholders of the fundraising resolutions at the company’s general meeting, which has been postponed and is now expected to be held on 20 May 2024.

Nightcap is not participating in the formal sales process for Revolution, which was also announced in April.

Update: ​Following publication of this story, Nightcap released a statement confirming it is in the early stages of assessing options of buying parts of Revolution Bars.

The Sarah Willingham-led group is assessing a number of possible options which include the acquisition of certain sites of Revolution Bars; the acquisition of certain operating subsidiaries of Revolution Bars; a possible share for offer for the entire share capital of Revolution Bars; the acquisition of certain brands of Revolution Bars; and the acquisition of certain assets of Revolution Bars.

In a statement to the London Stock Exchange, the group said: “The 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.”

As per the original story, Nightcap added that it has decided not to participate in a formal sale process for Revolution Bars.