Hong Kong-listed Guoco Group has denied that it will take the Rank Group private if the number of shares in the gaming and leisure group held in public hands falls below 25 per cent.
The Malaysian-backed investment group won a controlling share in the company after upping its stake to 40.8 per cent in May with the acquisition of a further 11.6 per cent of shares and triggering a mandatory offer of 150p per share, which was accepted by shareholders owning around 15 per cent of the company.
That offer is due to expire on July 1, by which time the company may have acquired 75 per cent of Rank’s stock. Although Rank’s management has warned the offer undervalues the company, it reluctantly advised its shareholders last week to accept the offer or risk potentially losing out if Guoco receives sufficient acceptances to de-list the shares.
However, Guoco said on Friday that it intends for the listing of Rank shares on the London Stock Exchange to continue. If, as a result of the offer, 25 per cent of Rank remains in public hands, the company will discuss with the Financial Services Authority whether the ‘free float’ is sufficient for it to remain as a listed company.
Should the FSA determine otherwise, Guoco said it would explore ways in which the necessary percentage of shares in public hands could be restored over a "reasonable" period of time.
"Guoco continues to believe that Rank has an excellent portfolio of businesses in the UK gaming sector, has a strong executive management team and is well positioned for future growth," it said. "Guoco, which has a proven track record and portfolio of public listed companies under its control, is comfortable with outside shareholders continuing to participate in Rank’s future prospects."
Today, Rank has advised those who believe the listing of shares may be cancelled at some stage to accept Guoco’s offer but recommended that those who do not share such concerns should reject it.
As of June 23, Guoco held a 56.83 per cent share of Rank’s issued share capital.
