Rank confirms casino talks

By Graeme Evans
Published on Monday 30 January 2012 10:43

The creation of the UK’s biggest casino operator was on the cards today after Mecca Bingo-owner Rank confirmed talks over a deal with Gala Coral.

Rank’s Grosvenor division already has 35 casinos but hopes to extend this by adding the 24 outlets owned by debt-laden rival Gala Coral, overtaking Malaysia’s Genting as the biggest firm in the sector.

A deal could be worth £250 million according to press reports over the weekend, but Rank said no terms have been finalised and there was no certainty it will take place.

An acquisition would accelerate Rank’s plans to have 45 Grosvenor outlets by the end of 2015 through the faster roll-out of its G-Casino format, which attracts a younger, less formal crowd. The business, which employs more than 3,000 people, has all but four of its casinos outside London.

A sale of the casinos would allow Gala Coral to concentrate on its Gala bingo and Coral bookmaking divisions, as well as strengthen its finances amid a net debt figure of £1.3 billion at the end of 2011.

The company has been seen as ripe for a break-up since a big debt restructuring in 2010 saw many lenders left with shares in the company, fuelling speculation that Rank would look to buy the casinos.

Rank is listed on the London Stock Exchange but majority owned by Guoco, the investment vehicle of Malaysian billionaire Quek Leng Chan.

The business also has more than 100 bingo clubs under the Mecca brand and owns the Bluesq sports betting and gaming business.

Malaysian firm Genting is currently the UK’s biggest casino operator with 45 sites, including its flagship Crockfords casino in London’s Mayfair.

Logged in as:

Comment here. Start typing your comment here:

Post comment

Please adhere to our Community guidelines

Your view

Please sign in to be able to comment on this story.