The pensions of Stride Gaming employees have been safeguarded as part of a recommended cash offer from Rank Group for the online gambling firm.

Rank Group, whose brands include Mecca Bingo and Grosvenor Casinos, has agreed an offer with Stride directors worth £1.51 per share, totalling approximately £155.3m.

As part of the deal, Rank said that it “intends to safeguard the existing contractual and statutory employment rights of the management and employees”.

It also stated that it does not expect to make any changes to current contribution levels in Stride's DC pension scheme.

The deal is reliant on a number of factors, including that no changes to the scheme had been made since 31 August 2018.

This includes the way that liabilities are calculated and funded, and the basis on which contributions and members qualifying for benefits are decided upon.

The acquisition will see Rank Group acquire 100 per cent of Stride and the combined business will have an online bingo market share of around 18 per cent, making it the second largest in the UK.

The Stride Directors, who have been so advised by Investec as to the financial terms of the offer, “consider the terms of the offer to be fair and reasonable”.

Stride directors will recommend the offer to shareholders in their next general meeting, who are expected to vote in favour of the deal.

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