PRESS DIGEST - British business - July 6
The Times
IS THE WHEEL OF FORTUNE SPINNING BACK IN FAVOUR OF RANK?
Despite a number of hindrances such as the introduction of the UK smoking ban, tax hikes and the overall state of the economy, Ian Burke, the chief executive of Rank Group (RNK.L), remains optimistic about the bingo and casino company's future. Burke has stated his intention to transform provincial casinos and bingo halls into modern leisure complexes, capable of taking on cinemas, pubs and restaurants. The appointment of former boss of Pizza Hut UK, Mark Jones, as Mecca's managing director has been vital in driving current projects at the forefront of Rank's fight back. These projects include a new five million pound Mecca Bingo centre in Beeston and a ninth G Casino in Dundee.
3I AND HIG TO INJECT 17.2 MILLION EUROS IN RESCUE PLAN...
Private equity group 3i (III.L) has agreed a rescue deal for VNU Business Media Europe that will involve HIG Capital taking over half of the Dutch media company. HIG, a distressed debt specialist that already owns some of the company's debt, will join 3i in injecting 17.2 million euros into VNU. As a result of the deal, 3i and HIG will own equal stakes while VNU's lenders will write off some of the company's debts and relax its banking covenants.
SALES UP AS BRIGHTHOUSE DISMISSES CLAIMS IT IS 'CASHING IN'.
BrightHouse, the retailer that specialises in selling electricals and furniture on credit to people on low incomes, has announced a 16.9 per cent rise in annual sales to 170.6 million pounds. Earnings before interest, taxation, depreciation and amortisation jumped 21.5 per cent to 29.4 million pounds. The company, owned by private equity firm Vision Capital, recently ran into criticism for its 29.9 per cent typical APR charges, particularly in light of its perceived customer base: single mothers, people on benefits and those unable to get credit elsewhere. However, chief executive Leo McKee claims the company has an impressive 96 per cent customer satisfaction rate. BrightHouse intends to open a further 20 stores over the next 12 months.
The Daily Telegraph
FORMER M&S CHIEF SLAMS SHAREHOLDERS
Marks & Spencer (MKS.L) former chief executive, Sir Richard Greenbury, has strongly criticised shareholder groups' "vindictive" attitude towards current executive chairman, Sir Stuart Rose. Greenbury claims the shareholders' stance is tantamount to a vendetta, adding that there is no suitable candidate to replace Rose, who should just be left to get on with the job of running the retailer. The comments come ahead of an advisory motion, likely to be backed by a large proportion of shareholders, calling for M&S to appoint a new independent chairman a year early in order to bring the company into line with corporate governance best practice.
BRIXTON BONDHOLDERS UNDER PRESSURE AS SEGRO CLOSES IN.
Property group Segro (SGRO.L) has moved a step closer to acquiring Brixton (BXTN.L) after the former secured a preliminary agreement to purchase its rival for 107 million pounds in an all-share offer. The news follows the announcement that an alternative proposal put forward by a Brixton bondholder in order to stave off Segro's advances has been rejected. The bondholder had suggested Brixton take on new management and launch a rights issue to manage the company's 862 million pounds of debt, but Brixton's board, shareholders and advisors deemed Segro's offer the best overall solution.
VASANTA IN TALKS TO SECURE NEW FINANCE
Sheffield-based Vasanta confirmed on Sunday that it is close to securing new investment. The faltering economy and the removal of credit insurance to key suppliers have hit the office supplies company which has been locked in talks with potential investors for a number of weeks. Following the release of half-year results in May, Vasanta's owner, the private equity firm Electra Partners, confirmed that it had written off 28 million pounds of its investment in the company. At this stage, it is unclear whether the any new deal will safeguard all of the 1,500 jobs within the company.
