Rank retains "watching brief" on M&A
CEO Henry Birch says operator is not "being left behind" during recent industry consolidation and ongoing M&A talks
The Rank Group will keep a “watching brief” on potential acquisitions and would not be “left behind” as industry consolidation continues to heat up in the wake of bwin.party deal speculation, according to chief executive Henry Birch.
In an interim management statement (IMS) released this morning, the UK-based firm announced a double-digit rise in online revenues for the 20 weeks ended 17 May and said its current financial position could be used to finance future M&A deals.
“We have a strengthening balance sheet which is a nice problem to deal with ultimately in terms of what to do with our cash,” Birch said in an analyst call following the IMS.
“Our position hasn’t changed on acquisitions and we keep a watching brief – our guiding principle is about where we think we can get value and strategic advantage,” he added.
And despite increased industry consolidation and new M&A discussions, Birch said he was unconcerned by Rank’s current position as it eyes up digital rather than retail targets.
“There’s clearly been a lot of speculation about bwin.party but I don’t think we’re being left behind and we take a look at anything that is on or potentially coming onto the market,” Birch said.
“We wouldn’t rule out any type of acquisition but along with the rest of the market digital provides better growth opportunities,” he added.
In the past week bwin.party has received a number of bids to acquire the business, including a joint offer from GVC and PokerStars owner Amaya Gaming, in addition to a proposal by 888.
Earlier this year 888 itself rejected a takeover approach from William Hill in a deal estimated to worth approximately £750m, while Toronto-based firm Intertain has muscled its way into the UK online bingo market with deals for Gamesys and Costa Bingo.