The Ultimate Leisure Group, the bar and nightclub operator, intends to raise £25m to finance an acquisition programme.

The company will issue 14.79 million shares at 169p each, which will then be bought by its two largest investors – Reuben Brothers and Dawnay Day – who will acquire 1.76 million and 7.03 million shares respectively.

Ultimate Leisure said in a statement that “the company has now reached the stage where more substantial acquisitive growth may now be contemplated and it is reviewing a number of acquisitions”.

The placing of the shares will raise the Reuben Brothers and Dawnay Day’s control in Ultimate to more than 30 per cent, which would normally require a general offer to be made to all shareholders.

The takeover panel has agreed to waive this requirement if shareholders approve the deal at an upcoming extraordinary general meeting.