Bar operator Ultimate Leisure could raise as much as £75m to fund expansion if investors vote for a share placement later this month.
The company plans to raise £25m through the share placement wit its two largest investors, Reuben Brothers and the Dawnay Day Group, a proposal that will be voted on by 120 shareholders at an extraordinary general meeting on 28 February.
Following the EGM, certain qualified investors will be able to purchase new ordinalry shares in the company, raising further funds. And, subject to shreholder approval of the share placement, Ultimate's backer the Royal Bank of Scotland is believed to be considering match-funding, which could bolster the bar chain's war chest to as much as £75m.
Ultimate chairman Mark Jones said the company had completed the first part of a planned three-stage turnaround of the businesses after a "satisfactory" Christmas trading period. Stage two will see the company purchase additional sites, and probably a privately helpp group, before consolidationg its operations during the final stage.
"we're seeking to build a premium bar business with both one-off freehold aquisitions and a group purchase," Jones told Caterer.