Rank execs U-turn on Guoco offer
RANK Group, the operator of Mecca Bingo clubs, has changed its recommendation to shareholders on the Guoco Group takeover bid yet again.
The group announced yesterday that shareholders should reject the offer if they are worried about the risk of Rank’s shares being delisted if Guoco gains enough acceptances.
The firm said investors would be left with shares difficult to trade or dispose of if Guoco decides to take the firm out of the London stock markets following a takeover.
The move comes after Rank Group begrudgingly advised shareholders on Friday to accept the bid at 150p per share, given uncertainty over whether Guoco would retain a listing, despite saying that it “substantially” undervalued the group at £586m.
However, after further talks held with Guoco on Friday afternoon Rank decided it still did not provide an “unconditional commitment” that it would either maintain the listing or keep the 150p per share offer open to shareholders for 18 months in the event it did cancel the listing.
Guoco said on Friday it would talk to the Financial Services Authority about keeping Rank’s London listing even if it eventually owns a majority share in the firm.
Analysts at Evolution Securities said Rank had taken a “pragmatic” two-pronged approach.