Guoco takes control of Rank casinos group
GUOCO Group yesterday confirmed it has gained majority control of bingo and casino operator Rank Group after a surprisingly high number of shareholders accepted its 150p-a-share offer.
Rank, which runs the Mecca Bingo and Grosvenor Casino chains, last month rejected a £586m offer from Guoco saying it significantly undervalued the business. However, holders of 15.6 per cent of Rank’s issued shares accepted the offer, taking Guoco’s holding to 56.4 per cent, with the offer remaining open to acceptances.
Property and investment firm Guoco, controlled by Malaysian billionaire Quek Leng Chan, launched its bid in May after buying a sizeable stake from Malaysian gaming group Genting Berhad. This took its stake to 41 per cent, triggering a mandatory cash offer under stock exchange rules. Guoco confirmed it intends to maintain Rank’s stock market listing and expressed a desire to continue working under the existing management structure.
A Rank spokesman said: “The board is carefully considering the situation. In the meantime, Rank shareholders are strongly advised to take no action.”
ADVISERS: RANK GROUP
NICK HARPER
GOLDMAN SACHS
GOLDMAN’S Nick Harper is leading the advisory team for Rank Group.
Earlier this year Harper advised Boparan Holdings as it built up its stake in takeover target Northern Foods, eventually striking a takeover deal for the Goodfella’s Pizza and Fox’s biscuits maker worth £342m.
Last year he helped Betfair float on the London Stock Exchange (LSE). The world’s largest betting website achieved a valuation of £1.4bn, triggering an over allotment option following bumper demand.
Harper was also a key player in last year’s €21.5bn (£18.14bn) takeover of Britain’s International Power (IP) by GDF Suez. The complex deal saw Goldman-advised GDF Suez take control of 70 per cent of the new company, with the rest in the hands of IP’s existing shareholders. GDF Suez also transfer some assets to IP.
In 2006 Harper worked for Boots during its £13bn merger with Alliance UniChem.