Rank considers demerging film business

UK leisure group Rank has started making plans to demerge and float its film business in a move that could value the division at around £600m (€863m), it was reported today.

London-based Rank, which also owns casinos, bingo halls and the Hard Rock Café chain, is said to have begun looking for executives with experience running quoted media companies to head the division.

But selling the arm still remains an option, with former Carlton Communications chairman Michael Green among those to have expressed an interest, according to The Times.

The group said in September that it may spin off its Deluxe film processing and media divisions after the loss of a major contract reduced profits.

This contributed to a sharp fall in profits at the wider group, which includes more than 100 Hard Rock Cafes in 38 countries, including Ireland.

Rank said at the time that it was considering a number of options, including a merger, sale or leaving the business as it is.

The film division employs more than 6,000 people, processes and distributes films, while Deluxe Media manufactures and distributes DVDs and videos.

According to today’s report, the group is selling Deluxe Media separately.

The company would not comment on today's report, which comes ahead of the British government’s proposed changes to UK gambling laws.

These have been welcomed by Rank, which said recently that measures such as the introduction of more slot machines would be positive for the industry.