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Rank Plans Demerger

UNITED KINGDOM – As reported by the UK Times: "Rank Group, the leisure operator that owns the Mecca Bingo and Hard Rock Café chains, has begun preparations for a demerger and stock market listing of its Deluxe film processing unit that would value the company at about £600 million, The Times has learnt.

"However, Rank has indicated that it would still entertain offers from potential buyers of the business.

"Sources familiar with the company said that a flotation had emerged as the more likely outcome, with Rank shareholders likely to receive equity in the demerged group on a one-for-one basis. Rank's brokers, Merrill Lynch and Deustche Bank, are expected to handle the share sale.

"Rank is understood to have started the search for executives with experience running quoted media companies to head up the division, whose operations include film distribution, post production and the Hollywood digital lab EFILM.

"But selling the business remains an option, and it is understood that Michael Green, the former Carlton chairman, is among potential buyers to express an interest.

"…Rank is withdrawing from the film business ahead of looming changes to UK gambling legislation, which will allow casinos to install more slot machines and advertise their products…"

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