Guoco Group's protracted takeover of UK-based casino and leisure group Rank now looks a formality following the news today (Monday) that the Malaysian-backed investor firm has just under 75 per cent of the company's shares.
As at 5pm on July 8, Guoco’s All Global Investments business unit had received acceptances for its 150p per share offer from shareholders owning 45.74 per cent of Rank’s share capital. Having extended the deadline for the offer by an additional 14 days to July 15, AGIL has received withdrawals from shareholders amounting to 11.78 per cent.
As a result, Guoco, which upped its stake in the business in May to trigger the mandatory share offer for the remaining stock, now holds 74.79 per cent of Rank’s existing shares.
If Guoco exceeds the 75 per cent mark at the close of the deal at 1pm on Friday, it will have the opportunity to de-list Rank’s shares from the London Stock Exchange. Although the company has on a number of occasions denied that this is its intention, in its most recent recommendation Rank itself called on shareholders to reject the offer and for those already committed to selling their shares to withdraw.
However, despite the return of Rank’s chief executive, Ian Burke, earlier this month and positive statement’s from the board about the company’s future prospects, today’s announcement suggests that the company will be firmly in the hands of Guoco come Friday’s deadline.
