Rank consider sale of £700m pension scheme
03/09/2007
UK Casino and bingo hall operator Rank Group is said to be exploring its options regarding a sale of the assets and liabilities for its £700m pensions scheme. Should a sale be completed, it will be the first such deal by a large public company, and it could encourage other pension scheme trustees to consider buy-out options.
Rank decided to fund the scheme, which contains up to £5bn worth of corporate pensions, “on a buyout basis” six months ago. Since that time it has received interest from buyout groups including Prudential, Legal & General and Goldman Sachs, along with specialist groups Paternoster and Synesis Life.
However a company spokesman stressed the necessity for trustees and staff to be consulted before a sale could proceed, also saying “ This is a hugely complex area that requires a lot of actuarial work before a decision can be taken.” The pension scheme has a £76m surplus and is bigger than the group’s market capitalisation.
