Guoco firms up offer for Rank
Hong Kong-based investment group reaches 50% shareholder approval required to trigger mandatory cash offer for UK betting and gaming group.
Long-term Rank suitor Guoco Group has received higher-than-expected acceptance from shareholders for its 150p per share offer, triggering a mandatory cash offer for the UK betting and gaming group.
The All Global Investments Limited (AGIL) subsidiary of the Hong Kong-based investment group announced that as of yesterday it had gained acceptances for the offer from shareholders representing 15.6% of Rank’s issued capital. In combination with its existing 40.8% shareholding, this took total acceptance of the offer to 56.4%.
Guoco announced its £586m bid for the land-based and online gaming group on 6 May, conditional on gaining acceptance from shareholders representing more than 50% of the stock, when its acquisition of the 11.6% stake of Malaysian casino group Genting Berhard’s stake took its total shareholding in Rank to 40.8%.
Guoco’s offer to acquire all outstanding shares in the Blue Square, Mecca Bingo and GCasino operator will now remain open to shareholders until further notice. Rank’s board in May advised shareholders to reject the 150p per share offer, which it said “significantly undervalues the company and its prospects”.
Reiterating his buy recommendation and 185p share price target, analyst James Hollins of Evolution Securities said in a note this morning: “We continue to think that shareholders should reject the bid as undervaluing the group that is making significant headway in operational improvements and benefiting from positive tax and regulatory changes.”
Rank said in a statement: “The Board is carefully considering the situation. A further announcement will be made in due course. In the meantime, Rank shareholders are strongly advised to take no action.”