Rank Group is back at the table hoping for a better deal with Gala Coral after it backed down from a potential purchase earlier this year. Rank said at the time the £250 million acquisition was not in the best interests of its shareholders.
In January 2012 the Rank Group initially proposed a bid to purchase Gala Coral for £250 million. Rank considered the deal a tad expensive but said it has a lot of potential, since it would increase Rank’s total tally of casinos from 25 to 36. Chief executive of Gala Coral, Carl Leaver said, “This transaction will crystallize significant value for our shareholders and debt investors.”
Presently the two companies are locked in discussions hoping for a better deal this time round. The Financial Times states until an amicable solution has been reached neither party will will disclose the nature of the deal.
Rank’s profits increased by 6% over the first quarter of the year hence the reason it resumed talks with Gala Coral. Many investors speculate that the Rank Group is seeking a new outlet for its new found wealth and what better way to celebrate it by purchasing a new casino.