Rank Regulatory News (RNK)

29 Feb 2008 07:00

Rank Group PLC28 February 2008 For Immediate Release 28 February 2008 The Rank Group Plc ("Rank") Transfer of the Rank Pension Plan ("Pension Plan") The Rank Group Plc ("Rank" or "the Group") announces that it has entered into aseries of agreements with the Trustee of the Rank Pension Plan and Rothesay Life(an FSA-regulated insurance company and wholly owned subsidiary of GoldmanSachs), to transfer the assets and liabilities of the Pension Plan to RothesayLife. The transfer will secure the accrued benefits for the members of the PensionPlan and will remove the remaining financial risks and liabilities in relationto the Pension Plan from Rank. As a result of the transfer, Rank will no longerbe required to make remaining scheduled contributions totalling £30.8m, whichthe Group agreed with the Pension Trustee at the time of the sale of Deluxe FilmServices in 2006. Upon completion of the transfer Rank expects to receive a cash payment of atleast £20m, representing the company's allocation of the expected surplus withinthe Pension Plan after an appropriate sharing with the Pension Plan's membersand any anticipated costs, including tax, associated with the transfer. Thecash payment will be used to reduce Group borrowings. The transfer is subject to clearance from HM Revenue & Customs regarding the taxtreatment of the transfer. Rank expects this clearance to be obtained by May2008 with completion of the transfer expected in June 2008. Commenting on the transaction, Peter Gill, finance director of Rank said: "The transfer of all the obligations and financial risk of Rank's definedbenefit pension plan to an insurer is in step with the changes we have made toreposition the Group in recent years. With the financial benefits that thistransfer provides, Rank will be better placed to address its near-termchallenges and to grasp its long-term opportunities. In addition, members ofthe pension plan will benefit from the high level of security provided byRothesay Life. This transfer is the result of an extensive review that included considerationof several options and discussions with a number of interested parties. Webelieve that the chosen option and the transfer announced today represent thebest outcome for all concerned." Enquiries The Rank Group PlcDan Waugh, Director of Investor Relations Tel: 01628 504053Sam Wren, Director of Tax, Treasury & Pensions Tel: 01628 504284 Financial DynamicsAndrew Dowler Tel: 020 7831 3113Marc Cohen This information is provided by RNS The company news service from the London Stock Exchange