The Hong Kong-listed Guoco Group has won a majority share of gaming and leisure firm Rank Group.
Having increased its shareholding in the UK-based gaming and leisure group to 40.8 per cent with the acquisition of an addition 11.6 per cent stake in May, Guoco triggered a mandatory 150p per share offer for the remaining shares of the company.
Despite Rank chairman Peter Johnson appealing to investors to reject the offer on the basis that it undervalued the company, shareholders owning around 15 per cent of the company accepted Guoco’s offer.
Consequently, Guoco now controls just over 56 per cent of Rank and its 150p per share offer will remain in place until further notice. In a statement, the company said its is looking forward to continuing its “productive relationship” with Rank and the “continued growth” of the business.
On Thursday, Rank responded by saying it still believes that Guoco’s offer undervalues the business and “fails to reflect its underlying value and prospects.” Its advice to shareholders, it said, remains the same.
