Tuesday 9 July 2019 9:02 am

Sports Direct set for Game Digital takeover after securing shareholder backing

Sports Direct said today that it has wrapped up enough support for its takeover offer of Game Digital, paving the way for Mike Ashley’s latest high street acquisition.

The retailer has said its offer for Game Digital is now unconditional, as its own 38.5 per cent stake and backing from other shareholders takes its support for the deal over the halfway benchmark to 54.3 per cent.

Since acquiring a 26 per cent holding in Game Digital two years ago, Ashley has been building up his stake to almost 40 per cent this year.

Sports Direct, which warned of potential job losses if its bid is successful, made an offer of 30p per share for the gaming company early last month.

Last month Game said it accepted a £52m takeover offer from the retail magnate, who has also snapped up the likes of House of Fraser and Evans Cycles in the last year.

The billionaire has also recently launched a legal challenge against department store chain Debenhams, having seen his stake in the troubled retailer wiped out after it fell into the hands of lenders this summer.

Debenhams has urged Ashley’s Sports Direct to drop its lawsuit over the firm’s controversial insolvency plan after a key landlord withdrew its legal action earlier this week.

Sports Direct has filed a complaint against the company voluntary arrangement (CVA), which will allow Debenhams to close some 50 stores in a bid to stay afloat.

Main image credit: Getty