Rank is worth substantially more than 150p per share ... - Rank Group
Rank is worth substantially more than 150p per share ... - Rank Group
Rank is worth substantially more than 150p per share ... - Rank Group
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Guoco <strong>Group</strong>’s Offer Substantially<br />
Undervalues <strong>Rank</strong> and its Prospects…<br />
<strong>Rank</strong> <strong>is</strong> Currently Trading at a Low Valuation…<br />
10.0x<br />
8.0x<br />
6.0x<br />
4.0x<br />
2.0x<br />
1 Yr Forward EV/EBITDA: Since Jan-2008<br />
Guoco <strong>Group</strong>’s Offer: 5.7x<br />
Forward EV/EBITDA<br />
2008 2009 2010 2011<br />
• Guoco <strong>Group</strong>’s Offer of<br />
<strong>150p</strong> <strong>per</strong> <strong>Rank</strong> <strong>share</strong> values<br />
<strong>Rank</strong> at 5.7x forward EV/<br />
EBITDA which represents a<br />
low point of its valuation over<br />
the last three years<br />
• Th<strong>is</strong> valuation also represents a<br />
significant d<strong>is</strong>count compared<br />
to <strong>Rank</strong>’s h<strong>is</strong>torical average<br />
one year forward EV/EBITDA<br />
valuation of 6.7x<br />
• Do not accept an Offer which<br />
values your <strong>Rank</strong> <strong>share</strong>s at a<br />
low point<br />
…And Analysts Believe in Significant Further Upside<br />
Analyst Target Prices (p)<br />
204<br />
• Analysts value <strong>Rank</strong> at well<br />
above <strong>150p</strong>, even before any<br />
premium for control<br />
Mean: 179p<br />
161<br />
167<br />
170<br />
179<br />
185 185<br />
12%<br />
26%<br />
• Guoco <strong>Group</strong>’s Offer represents<br />
— 26% d<strong>is</strong>count to the<br />
highest analyst target price<br />
Guoco <strong>Group</strong>’s Offer: <strong>150p</strong><br />
— 12% d<strong>is</strong>count to the<br />
median analyst target price<br />
Credit<br />
Su<strong>is</strong>se<br />
Investec<br />
Goldman<br />
Sachs<br />
Peel<br />
Hunt<br />
Matrix Evolution Panmure<br />
Gordon<br />
“In our opinion it’s [Guoco <strong>Group</strong>’s Offer]<br />
priced to fail, it will fail and it should fail. And<br />
everyone should be happy with that.’’<br />
(Evolution, 14 May 2011)<br />
“In our opinion, th<strong>is</strong> [Guoco <strong>Group</strong>’s Offer]<br />
dramatically undervalues the business – it does not even<br />
represent fair value for the casino div<strong>is</strong>ion alone – and<br />
<strong>share</strong>holders should not accept the offer.’’<br />
(Panmure Gordon, 9 May 2011)<br />
Guoco <strong>Group</strong>’s Offer Does Not Reflect <strong>Rank</strong>’s Fundamental Value<br />
16
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