The Rank Group is reportedly back in talks with Gala Coral over the acquisition of Gala’s portfolio of casino properties.
The two parties first announced in January that they were in discussions over a possible deal – believed to be worth £250m – to add Gala’s 24 casinos to Rank’s existing 35 Grosvenor Casinos properties.
However, in March, Rank said that the deal on the table was not in the interests of its shareholders. Now, reports indicate that the two companies have returned to negotiations.
Rank, which is now led by Malaysia’s Guoco Group, continues to enjoy significant success, with five per cent like-for-like revenue growth for the 18 weeks to May 6, 2012.
Total revenue for the group was up four per cent for the period. Its Grosvenor Casinos and Rank Interactive arms once again proved the most lucrative, with revenue up eight per cent and 17 per cent respectively.
Rank’s casinos experienced a two per cent improvement in customer visits and a six per cent increase in spend per visit. Its Belgian casinos, however, saw a reduction in customer visits, which was largely blamed on an extension to the country’s smoking ban.
