18th Feb 2015 07:52
LONDON (Alliance News) - Hong Leong Co (Malaysia) Bhd is to reduce its stake in The Rank Group PLC, according to a statement on Wednesday, with subsidiary GuoLine Overseas Ltd to sell about 50 million shares at a minimum price of 185 pence per share in an accelerated bookbuild placing with institutional investors.
Rank shares closed at 185.10 pence on Tuesday.
In a statement, GuoLine Overseas said the sale of the 12.8% stake will leave Hong Leong with about 219.1 million shares in Rank, the London-listed casino and bingo club owner, equivalent to a 56.1% stake.
"The placing will significantly increase the free float in Rank and is expected to improve liquidity in Rank's shares," GuoLine Overseas said in a statement.
The final pricing of the placing will be agreed by bookrunner Peel Hunt LLP and GuoLine at the close of the bookbuild process, with the results to be announced "as soon as practicable".
The books for the placing are already open and will be closed by 1700 GMT Wednesday.
By Samuel Agini; [email protected]; @samuelagini
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