Rank Gala Deal Done:It has finally happened !
There is a few fine details to overcome
Rank is to pay Gala Coral £205 million making it the biggest operator with 58 Casinos. The deal was confirmed in statement today (Sat 12.05.12). The initial payment will be £182 million and the rest will be held in escrow. The previous stumbling blocks have now all been addressed.
The deal does not include the Gala Coral Gibraltar and the Gala Dundee Casinos along with the central management facilities in Nottingham and 1 non operating licence in London (was the Gala Piccadilly which closed it doors)
Rank will fund the deal with £175 Million with new bank facilities along with existing funding. This will put Grosvenor into 11 additional major cities in the UK. The new Rank acquisitions will be re-branded to the Grosvenor Casinos and the G Casino brand.
There is still a few hurdles to jump yet before the final approval, the share holders and the office of fair trading have yet to speak on this major UK Casino deal.
The Monies paid to Gala Coral are likely to be used to pay debts as Gala were taken over by a consortium of Apollo Management, Cerberus and York Capital.
Beside the Major players in this deal there is sure to be many winners and losers that are affected with a deal of this size, employees, suppliers, along with the employees of the suppliers. Perhaps London Clubs will be relieved a little now the pressure is off as they were reported to be for sale just a few weeks ago
Watch this space to follow the Story