Revolution Bars Group PLC on Thursday said it held exploratory talks with Nightcap PLC, which could result in the latter making a takeover offer.

Revolution Bars shares rose 15% to 1.67 pence each on Thursday morning in London, while Nightcap shares were 7.8% higher at 4.47p each.

Revolution Bars is a Manchester-based bar group, which operates the brands Revolution and Revolucion de Cuba, while Nightcap is a London-based owner of the Cocktail Club, Adventure Bar and Barrio Familia chains.

Nightcap has until May 30 to announce a firm intention to make an offer or to announce that it does not intent to make an offer.

‘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,’ Revolution Bars said.

Sky News on Wednesday evening reported Nightcap was among the players in UK nightlife scene interest in buying all or part of Revolution Bars. Rekom Group, the owner of the Pryzm brand, is also interested, Sky News reported.

On Wednesday morning, Revolution Bars said it raised £12.5 million through a placing, subscription and open offer, announcing it will issue a total of 1.25 billion shares at the price of 1 pence per share.

In April, Revolution Bars announced the fundraise amid a restructuring plan that could see the business sold.

Without the additional funding, and cost savings delivered through a proposed restructuring plan, Revolution Bars said it would face liquidity pressures from the first quarter of 2025 onwards.

In addition, the company had said it had launched a formal sale process to see whether a sale of the company would provide a more beneficial outcome for stakeholders than the restructuring.

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