Nightcap pulls plans to bid for Revolution

Bar operator Nightcap has dropped plans to bid for troubled rival Revolution Bars Group. Revolution said earlier this week that a takeover proposal from Nightcap is “incapable of being delivered”, and that it will instead focus on plans for a £12.5m fund raise and restructuring. Nightcap said today that it noted that news “with disappointment”, having “invested significant time and resources” on the possible offer. The company said it will now not pursue a takeover of Revolution. “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,” Nightcap said. “The board of Nightcap believes that with five acquisitions in just over three years it is very well placed to continue executing on its consolidation strategy. The board also believes that opportunities for further consolidation in the late night sector will continue to arise in the coming year as the sector moves from incremental M&A activity to a fundamental structural transformation as many of the operators in the sector are going through significant change.”