UK-Rank prepares Gala takeover – G3 Newswire

Privateequity-ownedgamblinggroupGalaCoralhasconfirmeditwillsellitscasinobusinesstoBritishbingoandcasinooperatorRankfor£205m。

AttheendofMarch,RanksaidithadendedtalkstobuyGalascasinodivisionasthetermsoftheproposeddealwerenotbeneficialtoit。

Rank,whichis74。

5percent-controlledbyMalaysiasGuocoGroup,currentlyoperates35casinosand103bingohallsinBritain。

ThedealwouldseeRankbecomeBritainsbiggestcasinooperator。

Itwouldincludethepurchaseof23UK-basedcasinosandthreenon-operatinglicencestoRank。

ThetransactionexcludesthecasinosinDundeeandGibraltar,thenon-operatinglicencefortheCityofWestminster(London),thedivisionalandcentralmanagementfunctionsassociatedwithGalaCasinosLimited,thebrandedonlinecasinoactivitiesandthecasinofreeholdpropertiesownedbyGalaPropcoThreeLimited。

UnderRank’sownership,GalaCasinosLimitedwillremainthetenantofthesefreeholdproperties。

TheLTMturnoverandtheLTMclub-levelEBITDAofthecasinosbeingsoldwere£125。

9mand£25。

7mrespectivelyforthe12monthsended7April2012。

Oncompletion,GalaCoralwillreceivecashconsiderationof£182。

5m。

Rankwillpayafurther£22。

5mintoescrowwhichwillbereleasedtoGalaCoralinstagesbetweencompletionandAugust2015onsatisfactionofcertainconditionsrelatingtotaxation,pensionsandothercontingentliabilities。

GalaCoralhasnottakenafinaldecisionontheuseofproceeds,althoughitexpectstoreducetheGroup’sleverage。

ThetakeoverofthecasinosisconditionalonapprovalbyRanksshareholdersandthereceiptofUKmergercontrolclearance。

Commentingonthetransaction,CarlLeaver,GroupCEOofGalaCoral,said:“GalaCasinoshasdeliveredoutstandingresultsoverthelastyearandIwanttopaytributetotheleadershipteamheadedbyMarkSergeantandallthepeoplethatworkinthebusiness。

UnderRank’sownershipIamsurethatthebusinesswillcontinuetogofromstrengthtostrength。

Thistransactionwillcrystallisesignificantvalueforourshareholdersanddebtinvestors。




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