Rank Group’s CEO and CFO Announce Joint Resignation
The UK based bingo and casino operator, Rank, has endured a difficult month after two of its most seniors managers announced that they will be stepping down from their respective posts. Chief Executive Ian Burke and Chief of Finance Paddy Gallagher have revealed that they will be resigning from the board after a turbulent period at the corporation. Both have agreed to delay their departure in order to ensure a smooth handover to their successors. A statement issued on behalf of the company confirmed the joint resignation but refused to offer an explanation for the decision.
The move arrives just one day after the firm announced it had changed its mind regarding a takeover offer from the organisation’s majority shareholder, the Guoco Group. Investors at the company warned that the company, which controls 56% of Rank, could delist the group if its stake exceeds 75%. The initial offer was rejected by board members following concerns that remaining shareholders would be unwilling to hold onto a minority stake in a private company.
Commenting on the announcement, Evolution Securities analyst James Hollins offered his take on events. Alluding to the “flip flopping of recent days”, Hollins said that both Burke and Gallagher were likely to have felt their positions to be “untenable”. Online betting shop services, meanwhile, have reported very little changes in Rank share prices which currently stand at 149.6 pence. The company is now valued at 585 million pounds. All members of the industry will certainly be monitoring events very closely indeed as Rank launches one of its most significant recruitment campaigns to date.