5th Nov 2020 11:09
(Alliance News) - Casino operator Rank Group PLC on Thursday confirmed it is in discussions with advisers for an equity issue of up to 19.9% of its existing share capital.
The equity raise would go towards bolstering the FTSE 250 company's balance sheet "in this unprecedented trading environment". Rank stressed that there was no certainty the equity issue would go ahead.
Late Wednesday, Sky News reported that Rank - which owns Mecca Bingo - was planning to raise new funds ahead of the second lockdown in England that began Thursday.
Sky News noted that under emergency rules, companies could raise up to 20% of their market value through a fast-track placing.
https://news.sky.com/story/mecca-bingo-owner-rank-places-bet-on-cash-call-as-second-lockdown-hits-12123770
Shares in Rank Group were up 0.5% at 86.70 pence on Thursday in London, giving it a market capitalisation of GBP338.7 million. Based on this, Rank could raise up to about GBP67.5 million at the current market price, though an equity raise would normally be at a discounted price.
By Dayo Laniyan; [email protected]
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