As it is confirmed that Far East outfit Hong Leong has increased its stake in UK Bingo and Casino outfit Rank Group there is some confusion as to the long term future of the group. The Hong Leong stake is now in the region of 22% in the under performing UK giant but with Genting Bhd also holding a significant 11% stake there is strong speculation that the group is finally in play.
Hong Leong is controlled by billionaire businessman Tan Sri Quek Leng Chan who has been desperate to get a foothold in the UK market for some time. He pursued a number of casino operator licences in the UK but they were all rejected for one reason or another. So does he now see Rank as his way into the UK or is it just an investment?
Despite the dire state of the Rank balance sheet and the downturn in business there is still a strong brand and some good businesses in the group. Investors in the UK seem to have given up on the current management and the shares have been under pressure for some time with only sporadic takeover speculation keeping them in the limelight.
As it is confirmed that Far East outfit Hong Leong has increased its stake in UK Bingo and Casino outfit Rank Group there is some confusion as to the long term future of the group. The Hong Leong stake is now in the region of 22% in the under performing UK giant but with Genting Bhd also holding a significant 11% stake there is strong speculation that the group is finally in play.