Revolution Bars confirms takeover talks with Nightcap

2nd May 2024 07:26

(Sharecast News) - Revolution Bars confirmed on Thursday that it has held "an exploratory meeting" with Piano Works owner Nightcap about a range of possible transactions, including a potential takeover.

The company noted that Nightcap is not participating in the formal sales process, as announced on 10 April.

​It also insisted there can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made.

Under takeover rules, Nightcap has until 30 May to either announce a firm intention to make an offer or walk away.

"A further announcement will be made as and when appropriate," Revolution said.

Nightcap said in a separate statement that it was "assessing a number of possible options".

These could include the acquisition of certain sites of Revolution Bars; the acquisition of certain operating subsidiaries; a possible share for share offer for the company; the acquisition of certain brands; or the acquisition of certain assets.

Nightcap said its evaluation of the options is "at a relatively early stage".

"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," it said.

"The board considers that certain brands of Revolution Bars could be an excellent addition to the company's existing portfolio of brands."

It added that it has decided not to participate in Revolution's formal sale process "at this time".

On Wednesday, Sky News reported that Nightcap and Rekom had expressed an interest in buying part or all of Revolution.

Sky also said that a number of private equity firms were understood to have been planning to submit offers ahead of a deadline set by advisers to Revolution.

At 1245 BST, Revolution shares were up 8% at 1.57p.

Revolution operates 58 bars and 22 pubs, trading predominantly under the Revolution, Revolución de Cuba and Peach Pubs brand.

Nightcap operates 46 bars, which include The Cocktail Club, Dirty Martini, Tonight Josephine, Blame Gloria, Barrio and The Piano Works brands.