The deadline for the Guoco Group's 150p per share offer to Rank shareholders passes at 1pm today with the outcome still unclear.
On Monday, the Malaysian-backed company’s long drawn-out takeover bid looked to be a certainty, having confirmed that as of 5pm on July 8 it had amassed shares representing nearly 75 per cent of the company. If the number of shares held in public hands falls below 25 per cent, under current rules, Guoco could request that Rank’s shares be de-listed from the stock exchange.
However, by 5pm on July 12 the number of withdrawals received from what are understood to be institutional shareholders saw Guoco’s holding in Rank slip to 71.53 per cent. Of course, this gives the Hong Kong-listed investment firm 71.5 per cent of the total voting rights in the UK casino and leisure company, but it looks increasingly unlikely that it will be in a position to de-list the shares at 1pm today.
Although Guoco has on a number of occasions denied that this is its intention, in its most recent recommendation Rank’s board called on shareholders to reject the offer and for those already committed to selling their shares to withdraw. This now appears to have influenced a number of key shareholders but it will take many more to reject the offer over the next few hours to put the takeover in reverse.
More to follow.
