OpCapita takeover of GAME all but ruled out

A source close to Comet owner OpCapita has revealed to MCV that a deal to takeover GAME is now very unlikely.

GAME this morning filed for administration and is understood to be preparing to re-launch in a slimmed-down guise under an amended management team.

That’s despite the fact that OpCapita had, as revealed by MCV, tabled a bid that would have eradicated all of GAME’s debts and preserved the business as an on-going concern.

They put together a fully-funded proposal,” our source stated. They had the money lined up. They’d done due-diligence, and met the company and the banks. It was ready to go.

They wanted to operate GAME as a viable business. They’d re-established relationships with suppliers – and they had their support. So it’s slightly strange. The question for the banks now is are they going to pay the suppliers or is this all about the banks not being prepared to take a write-down of their debt?”

Our source added that a deal is still a possibility if talks can be re-established during the current ten-day moratorium period, but admitted this is looking unlikely”.

However, OpCapita’s original offer was for a pre-administration GAME. Any possible new deal would depend not only on the shape of the company that emerges from the other end of the process, but also the banks’ willingness to re-enter negotiations.

An official OpCapita statement issued to MCV said: We put forward a fully funded proposal which would have preserved GAME as a viable business in partnership with suppliers who have been very supportive.”