LONDON (dpa-AFX) - Rank Group (RNK.L), on Thursday, announced an agreement to sell its Blankenberge casino and associated digital licence to Kindred Group plc for a total consideration of £25 million in cash.
The company would use the net proceeds to reduce the Group's net debt position and for general corporate purposes. The company added that the sale would also support management's focus on Rank's transformation 2.0 programme to drive improvement across its core businesses.
For the full year to 30 June 2020, Blankenberge contributed £2.7 million to Group profit, before tax, and reported gross assets of £4.2 million as at 30 June 2020.
The deal is subject to regulatory approvals by the Belgian Gaming Commission and the Blankenberge City Council and constitutes a Class 2 transaction for the purposes of the Listing Rules.
John O'Reilly, Chief Executive of The Rank Group Plc, said, 'Today's announcement of the sale of the Blankenberge casino secures the next chapter for a great venue in Belgium and a team that deliver an excellent customer experience to the local community. As a standalone casino, the business was non-core to Rank's international growth plans and the £25m sale proceeds supports the Group's liquidity and future growth initiatives.'
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