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Revolution Beauty has reportedly turned down a bid from specialist private equity firm True, according to reports from Reuters.
The company confirmed that it is continuing to advance its engagement with its shareholders, including in respect of a potential equity raise.
As a result of this the company’s share price dropped over 7% at the time of writing since the markets opened on Friday morning (8 August).
Revolution began a formal sales process in May and by June had a number of interested parties. True is believed to be the only company which has made a formal bid, although a source told Reuters that the bid undervalued the company.
Another company which held an interest in Revolution was Mike Ashley’s Frasers Group. The company considered a bid but formally withdrew from the sales process last month.
Following Fraser’s announcement that it would not be bidding for the company Revolution Beauty stated: “The company continues to have constructive engagement with a number of other interested parties.
“Current discussions may be altered or terminated at any time and, accordingly, there can be no certainty that an offer will be made for the company, nor as to the terms on which any offer may be made.In parallel, the company is also continuing its positive engagement with its shareholders, including in respect of an equity raise.”
If no new bids emerge, Revolution is expected to move forward with raising capital from existing investors. The company’s largest shareholder is Debenhams and its involvement in any fundraising may depend on the completion of its own debt refinancing.
Additionally, the retailer has been negotiating with lenders to amend and extend its revolving credit facilities.
Revolution Beauty declined to comment on the reports of the rejected bid.
