Shares in Revolution Bars closed down nearly 12% after the company said no offers have been made for entire issued share capital of company.

The embattled bar chain has been up for sale since March, when it began “actively exploring all the strategic options available to it” in a bid to revive its flagging fortunes. The company said then that options under consideration would include a “restructuring plan for certain parts of the group, a sale of all or part of the group and any other avenue to maximise returns for stakeholders”.

On April 10, Revolution told the stock market that it would seek to implement a restructuring plan, referred to as the M&A process, which would involve raising £12.5 million from new and existing investors via an equity raise. It would pursue this alongside efforts to find a buyer.

Some 32 parties agreed to participate in the formal sale process (FSP).

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But in an update to the city this morning, Revolution said that the FSP and M&A process had “not resulted in any proposals relating to the acquisition of the entire issued share capital of the company, or the acquisition of the company’s assets as a whole via a single transaction”.

Revolution added: “In the FSP and M&A process the group has received a number of proposals in relation to certain of the company's assets, including, but not limited to, the acquisition of certain of its subsidiaries and/or the businesses and/or assets owned or operated by certain of the company's subsidiaries. However, none of the proposals presented (or any combination thereof) would result in a financial return to shareholders.

“The board continues to explore the FSP and M&A process, alongside the company's other strategic options. As noted in the announcement of 10 April 2024, these other options include a fundraising supported by existing and new shareholders which is conditional on (amongst other things) the successful implementation of a restructuring plan by Revolution Bars Limited.

“The board notes that, should the restructuring plan proceed and be sanctioned by the court, it would preserve value for the company's current shareholders, acknowledging the dilutive effect of the fundraising for those shareholders who have not participated in it pro rata to their current shareholdings.

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“The board further notes that the fundraising will require the approval of the company's shareholders in the general meeting. Shareholder approval of the fundraising would enable the restructuring plan to be progressed but would not preclude the directors from exploring any other option that may deliver a superior outcome to the restructuring plan. The directors will also consider any proposal made by Nightcap Plc.”

Revolution confirmed on May 2 that it had held an exploratory meeting with bar firm Nightcap over a range of possible transactions. Those included a possible offer for the entire issued and to be issued ordinary share capital of the company. Nightcap had not been participating in the FSP.

Revolution intends to hold its annual meeting on May 20. It was initially scheduled for May 2.

Shares in Revolution closed down 12%, or 0.2p, at 1.50p.