Mike Ashley’s Sports Direct International has sealed a £52million takeover of retailer Game Digital.
The group said its offer for the video games retailer is now ‘unconditional’ after winning approval from shareholders owning nearly 16 per cent of shares.
This refers to the fact that until now the deal going ahead was dependent on Sports Direct having shares, or agreements to sell shares, totalling over 50 per cent to give it a majority.
Sports Direct International has sealed a £52million takeover of Game
Sports Direct said that together with its 38.5 per cent stake, it has reached a position of 54.3 per cent and therefore the condition is satisfied.
The 30p a share offer will remain open for acceptances from other investors until 1pm on 30 July.
The mandatory cash bid was triggered after Sports Direct upped its stake in the video games chain to 38.5 per cent.
Game had advised its shareholders to accept the offer, saying that it represents fair value.
Sports Direct has signalled there may be store closures and job losses following the deal amid plans to review Game’s operations and potentially merge some sites into its wider empire.
Sports Direct founder Mike Ashley in the picking warehouse at the Sports Direct headquarters in Shirebrook
The deal represents Ashley’s latest move in his expansion across Britain’s retail sector having already snapped up House of Fraser, Evans Cycles and Sofa.com over the past year.
Sports Direct was already Game’s largest investor and has been a shareholder in the group since July 2017.
It has been working with Game to roll out concessions and competitive gaming and e-sports arenas, called Belong.
Sports Direct has previously said that following a deal to take control of Belong, it will look to open e-sports sites within Sports Direct, House of Fraser and elsewhere in the group.