Bingo Halls Owned by Rank are put on the selling block

Rank, a leisure and gaming group giant in Britain and owner of Mecca Bingo Club and the Hard Rock Cafe, gives its nod yesterday in the plan of selling some of its bingo halls and casinos that in a move to reduce its debts.

Rank arranged an agreement between them and the Earth Estates and Solarus Estates for a huge 172 million UK Pounds, equivalent to Ranks 40 bingo clubs and four casinos, which in turn will be leased back by Earth Estates and Solarus Estates to Rank at an initial payment of 11.2 million UK Pounds annually.

The whole agreement between the three companies is worth a total of 211 million UK Pounds, but Earth Estates and Solarus Estates will also bear the burden of Rank's 44 unwanted leases which count as a liability and can reduce the net value of the deal by 39 million UK Pounds.

According to Rank, there would be a pre-tax net book gain on the whole agreement of almost 53 million UK Pounds. The earnings from the whole agreement will be used to pay for the debts of the company.

Rank recently lost its Deluxe Media and Film arm interests after it was sold by the company for 5.9 million UK Pounds and is in the middle of reviewing its Hard Rock Cafe business ti see if it will be also sold or not.

Rank announced that the company owned bingo halls in Scotland have already lost 14% percent of its revenues after the smoking ban has been implemented almost three months ago.