18th Sep 2014 10:49
LONDON (Alliance News) - GAME Digital PLC shares were down on Thursday after the company's majority owner sold more of its stake in the company than originally planned at a discount.
Shares in the company had fallen earlier in the day 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.
Following the sale, Liberum said the number of shares sold by Elliot, via its Duodi Investments Sàrl investment vehicle, had been increased to 22.5 million on the back of strong demand. The increased sale represents a 13.2% stake in the company and takes Duodi's shareholding down to 48.3%.
The shares were sold at 260 pence each, a discount to GAME's closing price on Wednesday of 280.5 pence. Shares in the company were down 6.6% in late morning trade to 262.00 pence.
The sale comes three months after Elliott Advisors floated the video game retailer in an initial public offering in London 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.
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 received gross proceeds of about GBP20 million.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1, additional reporting by Sam Unsted; samunsted@alliancenews.com; @samuatalliance
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