Rank considers equity raise

Rank is considering a shares placement.
Rank is considering a shares placement.

The owner of Mecca Bingo and Grosvenor Casinos is in talks with advisors about a potential share placement.

UK.- The bingo and casino group Rank is in talks with advisors over a possible equity issuance to raise almost £70m in funding.

The decision would follow share placements in London from Flutter and William Hill earlier in the year.

General counsel Luisa Wright has confirmed that a placement was being discussed but that no decision had been taken.

Businesses listed on the London Stock Exchange may raise up to 19.9 per cent of their market capitalisation, which would allow Rank to raise up to £67.1m.

Rank said: “Such an equity issuance would be intended to strengthen Rank’s balance sheet in this unprecedented trading environment. There can be no certainty that the equity issuance will proceed.”

The discussions come as casinos and bingo halls in England were forced to close again from yesterday until December 3 under new Covid-19 measures.

England’s first lockdown saw casinos closed from March 23 until August 15. Bingo halls were able to reopen from July 4.

Rank reported a 8.2 per cent fall in revenue year-on-year for the 12 months ending June 30, with growth in digital helping to offset the impact on the pandemic on land-based revenue.

Earlier this week it emerged that the group has withdrawn completely from Belgium, selling its last property, Casino Blankenberge, to Kindred Group in a £25m deal.

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