(Reuters) - Casino and gaming operator Rank Group (LON:RNK) Plc said on Friday that it was in advanced discussions over a possible all cash offer for smaller online peer Stride Gaming Plc.
Rank has been investing in online operations to offset a slowdown in traffic at its bingo halls and casinos and attract younger players who use mobile apps to websites including meccabingo.com and grosvenorcasinos.com.
Stride, which says it is the third largest online bingo operator in the UK with 11% of the market, has been reviewing options to boost shareholder value and said in February that it was, among other options, looking at selling the entire company.
The offer, 151 pence per share, would be at a 28% premium to Stride's close on Thursday and values the company at 114.5 million pounds.
Listed on London's junior market, Stride is chiefly focussed on the UK market and runs over 150 brands including Regal Wins, Magical Vegas and Spin and Win.
In a separate statement, Stride said that regulatory changes across the UK online gaming market had hurt the company's half year results, pulling gaming revenue down 13% to 30 million pounds for the six months ended Feb 28.
Profit before tax fell to 2.6 million pounds from 3.9 million pounds a year ago.
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