Revolution Bars rejects ‘highly conditional’ Nightcap offer

Revolution Bars Group, which operates the Revolucion de Cuba and Peach Pubs brands, has rejected Nightcap’s non-binding proposal yesterday (28 May). 

According to the group’s update on the matter, the deal was rejected because Nightcap’s offer was “highly conditional” and required Revolution Bars to proceed with the restructuring plan but not the existing fundraising of £12.5m.

This comes after the company confirmed that on Thursday 2 May it had held an exploratory meeting with Nightcap regarding a range of possible transactions, including a possible offer for the entire ordinary share capital of the group. 

Nightcap’s non-binding proposal was received by Revolution Bars on Friday 17 May, following which “clarification calls were held and additional information supplied”. 

Following legal advice, Revolution’s board also concluded that the Nightcap proposal was “incapable of being delivered”, as a number of challenges had surfaced. 

Nightcap’s offer was subject to multiple equity fundraisings; assumptions regarding the support of Revolution and Nightcap’s respective lenders; material due diligence; as well as “significant” time, material cost and potential untested legal and procedural issues.

However, the board stated in its update that it remains “open to considering any future proposal from Nightcap or any other party”, following completion of its restructuring plan, at which time the company would have been recapitalised.