Business
Change in Rank Board Recommendation
Change in Rank Board Recommendation.
About this update from Rank Group Plc
[{"type":"text","content":"\n \nRNS Number : 3144J Rank Group PLC 28 June 2011 \n\n28 June 2011\n \nThe Rank Group Plc\n \nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO THE SAME WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION\n \nChange in Rank Board Recommendation\n \nFurther to the statement made earlier today regarding the resignations of Ian Burke and Paddy Gallagher, the Board of The Rank Group Plc (\"Rank\" or the \"Group\") (the \"Board\") has considered its position and has sought feedback from a number of shareholders who represent a material proportion of Rank's share capital.\n \nBased on the feedback from these discussions, the Board believes that, as a result of the earlier statement, the probability of sufficient shareholders accepting the offer of 150p per share by Guoco Group Limited (\"Guoco Group\") (the \"Offer\") such that the number of Rank shares held in public hands falls below the UK Listing Authority's listing eligibility threshold of a free float of 25 per cent. has materially increased. As a result the Board believes that risk of a cancellation of Rank shares has increased significantly and, despite the assurances set out by Guoco Group on Friday, 24 June 2011, there is no certainty that Rank will be able to maintain its listing on the London Stock Exchange (the \"Listing\") following closure of the Offer.\n \nIn the event that Rank's Listing is cancelled, Rank shareholders who have not accepted the Offer by its closure will own shares in an unlisted company controlled by Guoco Group and will have no further opportunity to accept the Offer. In addition, Rank shareholders would no longer be provided the protections available to them under the Listing Rules; the liquidity, marketability and value of Rank shares will be significantly adversely affected, and Rank shareholders' ability to dispose of their Rank shares following closure of the Offer will be materially restricted.\n \nAccordingly, while the Independent Directors of Rank, who have been so advised by Goldman Sachs International, consider the Offer to substantially undervalue Rank, for the reasons stated above they are now recommending that shareholders accept the Offer, as they will now be doing in respect of their own beneficial sh...