Sports Direct makes £51.9m takeover bid for Game Digital
Mike Ashley’s retail empire Sports Direct International is making its latest move to expand across the UK high street with a £51.9 million bid for Game Digital.
Sports Direct said it will offer 30p a share for Game Digital under the cash bid, which was triggered after it upped its stake in the chain to 38.5%.
But Sports Direct warned there may be store closures and job losses if the bid succeeds amid plans to review the chain and potentially merge some sites with others in the wider group.
Mr Ashley’s retail empire was already Game’s largest investor and has been a shareholder in the group since since July 2017.
Sports Direct said: “Sports Direct does not believe that, as a standalone business, Game is able to weather the pressures that it is facing.
“Sports Direct believes that the offer, in providing Game with the wider benefit of Sports Direct’s operating and other experience and increased support, will secure Game’s future and allow it to navigate these pressures.”
It added the 30p-a-share bid was final and represents a 27% premium to Game’s closing price on Tuesday of 23.55p.
Sports Direct was required to make a mandatory offer for Game under UK takeover rules after taking its stake above 30%.