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Game Group confirms third party funding interest 15 March 2012

Game Group has confirmed an interested party has requested permission to open talks with the group’s current lenders with a view to potentially providing additional funding.

The company said that there is no certainty as to the outcome of the current discussions and these are separate to the board’s own discussions with its current lenders as part of its ongoing business review.

The news came just hours after Prudential and its investment fund arm M&G Investments sold a substantial number of shares in the group, reducing its voting rights to a negligible level.

On Monday, the retailer announced that it had not been possible to source new products from a number of suppliers because of ongoing talks about its terms of trade.

Prior to yesterday’s sale of shares, M&G Investment Funds 3 held 20m shares in the Game Group while Prudential Group of Companies owned a further 22.6m shares.

In a statement to the stock exchange earlier in the week, the company said the board was ‘actively’ working to resolve its issues as quickly as possible.

It added: “This includes ongoing discussions with suppliers, seeking access to the original facility or alternative sources of funding, and reviewing the position of all of its assets in the UK and international territories.

“It is uncertain whether any of the solutions currently being explored by the board will be successful or will result in any value being attributed to the shares of the company.”

M&G’s corporate finance team declined to comment on its trading positions.

 

 

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