Rank Acquire Gala Casinos For £179 Million
Rank Acquire Gala
Deal Done ! Originally the deal was referred to the Competition Commission as it was feared that this would reduce customer choice and value but after careful consideration from the Commission it has been decided that the deal can Happen
On 12 May 2012 The Rank Group Plc (“Rank”) announced that it had conditionally agreed to acquire Gala Casinos Limited (“GCL”) from Gala Coral Group Limited (“Gala Coral”). That conditional agreement (the “Original Agreement”) envisaged Rank purchasing 23 casinos and three non-operating casino licences (the “Proposed Acquisition”). The Original Agreement anticipated the possibility of the Office of Fair Trading (“OFT”) requiring a limited number of casinos to be excluded from the Proposed Acquisition. Rank shareholder approval for the Proposed Acquisition was obtained at a general meeting of Rank held on 26 July 2012.
Rank is pleased to announce that it has now agreed terms with Gala Coral for the purchase of 19 of the 23 casinos originally comprised within the Original Agreement, as well as the three non-operating licences also comprised within the Original Agreement (subject to agreeing in the next few weeks appropriate remedy undertakings with the Competition Commission in relation to the four casinos to be retained by Gala Coral and Rank‟s non- operating licence in Edinburgh, and the disposal of that non-operating licence to a purchaser approved by the Competition Commission).
Rank Acquire Gala
This will now take Grosvenor Casino to the largest Casino operator in the UK outgunning Gentings whom were the largest operator. The total operational Casinos for Grosvenor (Rank Group) will be 54. This will now take Grosvenor Casinos into an additional 11 cities in the UK. It is anticipated that the G casino format will be rolled out to 8 of the Gala Casinos over a 2 year period and a further investment f some £25 Million
Ian Burke Chairman and Chief Executive commented
“This acquisition enables us to capitalise on our proven record of operational excellence in the British casino sector and is expected to be earnings enhancing in the first full year of ownership. By rolling out the „G Casino‟ format into the Gala estate and expanding the Grosvenor Casino brand into 11 new cities, we will accelerate the growing awareness of the brand and support the development of a multi-channel gaming business.”
Rank Acquire Gala, Good for the Casino business ! have your say on C4D