Game on for return to stock market

Game is returning to London's main stock exchange just two years after the video gaming retailer was delisted

A woman using a computer
A woman using a computer

Game is returning to London's main stock exchange just two years after the video gaming retailer was delisted as it collapsed into administration.

The swift turnaround comes after administrators and its new owners shut around half of the outlets to scale back a costly store base which, coupled with heavy competition from online rivals, helped lead to its demise.

The listing of a stake of at least 35% before the end of June is expected to value the company, which now has 327 stores in the UK and 233 in Spain where it did not file for administration, at around £400m.

“The turnaround of the Game business is remarkable,” said its chairman David Hamid.

“Game in the UK has been transformed and strengthened, while Game in Spain has proved its resilience.”

The company, to be renamed Game Digital for the initial public offering (IPO), made £50.8m in underlying earnings in the six months to the end of January, which is double the £24.5m it made the year before, on revenues of £586.4m

It will also be debt-free when the IPO is launched, after reportedly owing creditors around £180m when it filed for administration in March 2012.

Hedge fund Elliott Advisors, which owns more than 90% of Game after backing a rescue deal led by private equity firm OpCapita, plans to retain a significant stake in the business.

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