18th Sep 2014 09:20
LONDON (Alliance News) - GAME Digital PLC shares fell Thursday after Liberum Capital Ltd said it was selling 17.5 million shares in the company, a 10% stake, on behalf of GAME's majority owner, US hedge fund Elliott Advisors.
The sale comes three months after Elliott Advisors floated the video game retailer in an initial public offering that gave it an initial market capitalisation of GBP340 million. Elliott had funded the acquisition of the UK and Spanish business out of administration in 2012.
In a statement, Liberum said the tranche of the 17.5 million shares to be sold represents about 17% of the remaining holding of Elliott investment vehicle Duodi Investments Sàrl. The shares are being sold through an accelerated bookbuild, which means little or no marketing will be done. The price of the share placing and the final number of shares to be sold will be decided by Liberum and Duodi at the close of the bookbuild process.
Duodi Investments raised about GBP101 million in GAME Digital's IPO. A total of 60.5 million shares were included in the IPO, about a 35.5% stake in the business. The company got gross proceeds of about GBP20 million.
GAME Digital shares were down 6.6% at 262 pence Thursday morning, still well above the IPO price of 200 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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