June 5, 2019 / 1:46 PM / 4 months ago

Sports Direct to buy struggling video gaming retailer Game Digital

(Reuters) - Mike Ashley’s Sports Direct International Plc on Wednesday offered to buy video games retailer Game Digital Plc, which has been struggling in a tough retail environment.

Sports Direct, which owns about 30% of Game, offered to buy the remaining shares at 30 pence per share in cash, valuing the company at about 51.88 million pounds.

The final offer price represents a 27.4% premium to Game’s closing price of 23.55 pence on Tuesday.

Sports Direct said it did not expect Game to navigate as a standalone company in the midst of a subdued retail and gaming environment, adding that it intends to launch a review of Game’s existing strategic programme.

Game, which listed in 2014, has been hit by higher costs, slower expansion of Belong arenas and weak demand for consoles as Gamers wait for the launch of new PlayStation, expected in 2020.

Sports Direct already has an ongoing collaboration with Game to place Belong arenas, where gamers can play on platforms such as PS4 and Xbox One, in its stores.

Reporting by Sangameswaran S in Bengaluru; Editing by Anil D'Silva

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