Game Digital

Canaccord Genuity acts as Rule 3 Financial Adviser and Joint Broker to GAME Digital plc, on the recommended mandatory all cash offer by Sports Direct International plc

Canaccord Genuity is pleased to announce it has acted as Rule 3 Financial Adviser and Joint Broker to GAME Digital plc (“GAME” or the “Company”), on the £51.88 million mandatory all cash offer by Sports Direct International plc (“Sports Direct”).

GAME is a multi-channel retailer in the video games market, with its product range including playing experiences and events, in addition to the sale of video games hardware and content. The Company operates approximately 580 stores across the United Kingdom and Spain and is the leader in the new console market with a 26% and 38% market share respectively for these two regions. Since February 2018, GAME has established its BELONG concept under a collaboration agreement with its longstanding significant shareholder Sports Direct, in a strategy to move from lower-margin product retailing, towards high-margin gaming experiences.

Sports Direct is the UK's largest sporting goods retailer, operating a diversified portfolio of sports, fitness, fashion and lifestyle fascias in over 20 countries, with approximately 26,500 staff and a reported revenue of £3.4 billion, for the year ended 29 April 2018.

Sports Direct announced its mandatory all cash offer for GAME on 5 June 2019, having unconditionally acquired 14.9 million GAME shares, taking its shareholding in GAME from 29.90 per cent. to 38.49 per cent. The 30 pence per share offer price represented a premium of 27.4 per cent. to GAME’s closing price on the 4 June 2019, with the Directors of GAME recommending the offer to shareholders on 21 June 2019. The offer became fully unconditional on 9 July 2019 and GAME expects to delist from Premium Segment of the London Stock Exchange on 12 August 2019. Canaccord Genuity has acted as a long-term adviser to GAME, acting as Financial Adviser, Sole Sponsor and Joint Bookrunner on its IPO in 2014 and has since acted as the Company’s ongoing retained Financial Adviser and Joint Broker.

The transaction team consisted of Chris Robinson, Bobbie Hilliam and Richard Andrews.