Rank strikes deal to buy Gala casinos

Mecca Bingo owner Rank is set to become the UK’s biggest casino operator after staking £205 million on a deal with rival Gala Coral.

The proposed acquisition of Gala’s 23 casinos will give Rank’s Grosvenor division 58 UK sites – taking it above Malaysian firm Genting, which has 45 locations including Crockfords casino in London’s Mayfair.

All but four of Rank’s casinos are outside London, with the company focused on the faster roll-out of its G-Casino format, which attracts a younger, less formal crowd. The Rank business employs more than 3,500 people.

Hide Ad
Hide Ad

The sale of the casinos will 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.

Rank is paying an initial £182.5m for the Gala casinos with the rest paid in stages until 2015 when certain conditions are met.

The deal also includes three non-operating licences but excludes the Gala casinos in Dundee and Gibraltar and the non-operating licence for Westminster.

It is subject to the approval of Rank shareholders and competition authorities but is due to complete in September. A number of the Gala sites are expected to be rebranded under the G Casino name.

Related topics: