Rank PLC Takeover Saga

The takeover of Rank Plc who is the owner of Mecca Bingo amongst other things has taken yet another twist. After some assurances from the Guoco group who now effectively control the group, the board of directors of Rank issues yet another recommendation to its shareholders.

It is now recommending that investors reject the offer. One can only imagine the feverish negotiation in board rooms to thrash out this torturous deal. Guoco has effectively extended the time period of its shares offer to allow investors to reject the offer if they wish to do so.

Essentially if they pass the 75% shareholding a delisting of the shares is more than probable. Guoco currently controls 80.8 percent of the company and according to reports are hoping that further investors are going to withdraw their acceptance of the offer.

This has certainly been a farcical situation; the board of Rank Plc has issued 5 separate recommendations to its investors in a matter of weeks. First advising investors to accept and then changing its mind again and again.

This entire situation was triggered when Guoco bought the shareholding in Rank owned by another Malaysian company – Genting. Genting own a number of land based Casinos in the United Kingdom and are reportedly the largest gambling company in the world based on turnover.

Written for Online Keno by Greg.