The Guoco Group has expressed its "surprise and disappointment" at the resignations of Rank's top executives and the U-turns by its board in relation to its takeover offer. In a move likely to appease the concerns of some investors, its 150p per share offer has now been extended by 14 days.
The Malaysian-backed investment group is expected to further increase its holding in the UK-based gaming and leisure group, potentially taking enough shares out of public hands to take the company private.
However, in response to Rank’s suggestion that the company’s shares are likely to be de-listed and the departures of Ian Burke and Paddy Gallagher, Guoco was moved to reiterate its stance to the financial markets that it has "no intention" of cancelling Rank’s listing "voluntarily" if sufficient shares remain in public hands.
In circumstances where enough acceptances are received and less than 25 per cent of Rank remains in public hands, the company said it would discuss with the Financial Services Authority whether the free float is sufficient for Rank to remain a listed company. Should the FSA determine otherwise, it will work with the FSA to restore the necessary percentage of shares in public hands over time.
Guoco revealed that the Rank board had sought an unconditional, open-ended commitment that it would not de-list the shares - something the Hong Kong-listed group said it could not do while the offer process involved matters "not entirely within its control."
Rank then requested that Guoco commit to providing an 18-month window for any remaining shareholders to sell their shares at a minimum price of 150p per share in the event that the company is de-listed from the stock exchange.
This, said Guoco, was an "unreasonably onerous requirement" that it could not accept.
Instead, the deadline for the offer will now be extended from 1pm today to 1pm on July15. Guoco also said it will work with the Rank board to appoint new executive management as soon as possible.
