IT’S GAME ON FOR ASHLEY
Mike Ashley’s Sports Direct empire has bagged a near 26% stake in struggling high street chain Game.
The tycoon’s firm snapped up 44 million shares in Game Digital on Wednesday.
It’s unclear why the billionaire made the move and whether he intends to launch a takeover. However, Ashley could have sensed a bargain given Game’s share price tanked after it issued a recent profit warning.
Game’s share price on Wednesday jumped from 20p to 24p, meaning Sports Direct paid anything from £8.8million to £10.5m for the holding.
Game said was it “pleased” about Sports Direct’s backing. It added: “The group looks forward to working with Sports Direct.”
The deal emerged amid a High Court case in which Ashley is being sued by an investment banker.
Jeffrey Blue claims the tycoon agreed, during a boozy pub meeting in 2013, to pay him £15m if Sports Direct’s share price soared.