// Game agrees to the £52m takeover by Mike Ashley’s Sports Direct
// The gaming retailer said it had little choice in the decision
// Sports Direct bought a share in Game in 2017 and increased it to 38.5% in early June
Game Digital has given Mike Ashley’s Sports Direct the green light for a £52 million takeover.
The new takeover could result in House of Fraser stores rolling out purpose-built gaming arenas for video gamers.
In a statement to the stock market, Game said it didn’t have much choice but to accept an offer from Ashley’s Sports Direct.
The retail group bought a 26 per cent stake in the company in 2017 and increased the stake to 38.5 per cent earlier this month.
City rules stipulates that when a shareholder’s stake increases to more than 30 per cent, a takeover offer must be made.
“In coming to this recommendation, the board has considered the growing size of Sports Direct’s shareholding in the group,” Game said.
“Current negative retail market outlook and the likely elongated current console life cycle are expected to impact the future financial performance of the group.”