13-06-2008: Guoco raises stake in UK’s Rank Group

LONDON: Malaysia-based Guoco continued its stakebuilding in British casino and bingo club operator Rank Group plc, lifting its holding to 12.67% from 12.02%, it said yesterday.

Guoco, part of the Hong Leong group run by Quek Leng Chan, bought the Clermont Club in London’s Berkeley Square from Rank two years ago and is looking to build a casino base in the UK. It has been steadily increasing its shareholding in the owner of Grosvenor Casinos since the start of the year. Rank, hit hard by legislation that has banned both smoking and lucrative gaming machines in its bingo halls, has been the subject of takeover rumours since a profit warning last October led to a collapse in its share price.

Shares in Rank have underperformed the FTSE All Share Travel Index by 34% over the past twelve months. The stock rose 0.7% to 77-1/2 pence (RM4.92) by 0712 GMT.

Malaysia-based gaming group Genting has built an 11% stake in Rank, but has denied that it is considering a bid. — Reuters