Game Group Plc Delisted From London Stock Exchange

GAME Group PLC has issued a press release today regarding the state of the company, in which it states that they have requested to be delisted from the London Stock Exchange as of 7:30 am today. Apparently the reason for this move is that the board believes there is no value left in the group.

The full statement can be read below:

“Further to the announcements of 12 March 2012 and 14 March 2012, the board of GAME has assessed the status of the ongoing and regular discussions between GAME and its lending banks and between its lending banks and a potential third party provider of finance to the business.

The Board now considers itself to be unable to assess the business’s financial position, and is of the opinion that there is no equity value left in the Group. Therefore the Company has requested that the listing of its securities on the Main Market of London Stock Exchange plc be suspended from trading with effect from 7:30am today.

The Company will provide a further update in due course.”

Whilst the end of this press release suggests that there is news ready to be revealed in the coming days, the fact they have become voluntarily delisted and see no value left in the group is not a good sign for their future prospects. If they were considering the previously reported Op Capita buyout offer, they would likely want to keep the business running with as little change as possible. Current speculation is that the third party mentioned in the press release wishes to make more drastic changes to the business, and as such wants to wait until the group has gone into administration before announcing their plans for the group.  

What do you think of this news? Would you like to see GAME continue on as they currently exist, or do you think a more drastic shake up of the company is needed? Let us know in the comments below.

Sources: Source 1

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