Videogame retailer takes step towards £52m Sports Direct deal

Sports Direct’s £52m takeover of videogame retailer GAME has taken a step closer.

GAME has issued a statement saying that its Board will recommend Sports Direct’s offer to shareholders.

Sports Direct has been an investor in GAME since July 2017 and currently holds almost 39% of the company, meaning it is required to make a bid for the remainder of the company.

In February 2018, Sports Direct and GAME entered into a collaboration agreement covering the rollout of BELONG and GAME retail stores, including the entering into of concession agreements regarding the siting of BELONG arenas and/or GAME retail stores in Sports Direct locations.

The GAME statement said: “The Board acknowledges Sports Direct’s intention to work with the GAME team as part of its ongoing review of the business and to accelerate the evolution of the BELONG business.

“GAME continues to see significant opportunity with its transformation strategy and rollout of BELONG. The Board is therefore disappointed that it is not able to execute this strategy on a standalone basis. Nevertheless, the Board believes that the Mandatory Offer has the potential to deliver a number of strategic benefits to GAME’s business, including the opportunity to benefit from Sports Direct’s increased financial and operating support.”

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