Less than a week after resigning as chief executive of the Rank Group amid an acrimonious takeover by the Malaysian-backed investment firm Guoco Group, Ian Burke has made a shock return to the company.

The tug-of-war between the UK-based casino and leisure company and Guoco has been described by some analysts as descending into farce, with this latest news creating further confusion.

Having upped its stake in Rank in May, Guoco triggered a mandatory 150p per share offer for the remaining publicly-held stock. This offer was due to close on July 1 but was extended by an additional 14 days in the wake of Burke’s exit.

Rank initially urged its investors to reject the offer on the grounds that it undervalued the company but, when it seemed likely that the number of shares held in public hands would drop to below 25 per cent and enable Guoco to de-list Rank from the stock market, the board revised its recommendation and called on investors to accept the offer or risk losing out.

In another U-turn, Rank’s board announced on Monday that Burke would return as chief executive and chairman on the close of the offer and called on shareholders to reject the offer once again.

Those who have already accepted the offer should withdraw, it said.
“Rank shareholders now have a genuine choice between the potential future benefits of holding their shares in a listed Rank and the ability to receive 150p per share,” it said.

Burke explained that Guoco’s decision to extend the offer has “addressed concerns” that had created significant “uncertainty” for shareholders.
“Along with the board, I am excited about the future for Rank and providing all shareholders with the ability to benefit fully from the substantial opportunities for growth and value creation that are available to Rank,” he said. “We believe that Rank is an excellent business with strong positions and trusted brands in fundamentally attractive markets. Now that certain risks and uncertainties have been removed, we do not believe that this is the right price at which to sell shares in Rank."

Guoco, meanwhile, welcomed Burke’s return and confirmed that it had indeed received sufficient acceptances to de-list Rank’s shares, although it has previously stated that this is not a specific objective.

As of 1pm on July 1, it said it had received acceptances to take its stake in the company to 85.69 per cent but also acknowledged that shareholders holding 4.93 per cent had informed it of their desire to withdraw.

With both camps stating that the company is well positioned for the future, the outcome of the takeover offer – in light of Rank’s latest advice to shareholders – is no easier to predict.