Rank Group Plc, the operator of Mecca Bingo clubs and Grosvenor casinos, said a 150 pence a share offer from Guoco Group Ltd. “significantly undervalues” the company.
The offer, required after Guoco boosted its shareholding in Rank to 41 percent, represents a 0.8 percent premium to yesterday’s closing price of 148.8 pence, Maidenhead, England-based Rank said in a statement late yesterday.
Rank, which has gambling businesses in the U.K., Spain and Belgium, rose 1.3 percent on Friday, valuing the company at 581 million pounds ($951 million.)
“The Guoco Group stated that it looks forward to continuing its existing relationship with Rank,” according to the U.K. company’s statement.
Guoco, a Hong Kong investment group, made the bid after subsidiary All Global Investments Ltd. bought the 12 percent stake in Rank held by Genting Bhd, Guoco said in a statement on May 6. Genting is a Malaysian holding company with interests in gaming and entertainment.