Investor backing for Rank’s £205m Gala casino deal

Mecca Bingo owner Rank’s shares were boosted as investors welcomed a £205m deal with Gala Coral to become the UK’s biggest casino operator.
By The Newsroom
Published 15th May 2012, 07:00 BST

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.

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The Rank business employs more than 3,500 people. Shares rose 4 per cent yesterday, giving the company a value of £476.9m.

James Cooke, an analyst at Panmure Gordon, said that the deal was “relatively inexpensive compared to similar UK casino transactions” and the quality of the group would be improved by making two-thirds of its earnings from casinos.

Ian Burke, chairman and chief executive of Rank, said: “This acquisition will deliver a step change in Rank’s earnings by capitalising on our proven record of operational excellence.”

He added that the deal would allow Grosvenor Casino to expand into 11 new cities.

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