|Giant UK gambling group Rank, which also operates successful online gambling sites, has announced that property group Richardsons Capital has acquired 9.3 percent of the firm via a contracts for difference (CFD) deal.|
Rank has been the centre of attention on the London market over the past two weeks. It first rejected an attempt by US giant Harrah's to acquire a 28 percent interest before having to accept an accretive acquisition of ten percent of its shares by Malaysian casino group Genting Berhad.
Richardsons is apparently undeterred by market fears over the impact of smoking bans and over-taxation as the purchase is thought to be a long-term investment. The firm has built both land casinos and bingo halls for Rank in the past.
“I think Rank is grossly undervalued,” said Lee Richardson, Director for the UK-based property firm.
“It is a strong company and a strong brand. It was time to get the chequebook out. It’s an investment decision and that’s it.”