CONNECT WITH US
Gaming

Gaming

Devolver Digital intends to go private

GamesIndustry.biz logo

Published on

Add as a preferred source on Google
Devolver Digital intends to go private

The company says that its share price is not a true reflection of its value, shareholders will vote on the matter in September

Indie publisher Devolver Digital is looking to once again become a private company later this year.

In a release to investors, the label announced its intention to delist from UK's AIM market. Shareholders are set to vote on the matter later this year at Devolver's AGM, which is scheduled for September 8. If investors vote yes, then Devolver will cease to be a publicly-traded company on September 16.

Devolver initially went public on the AIM in November 2021 with a valuation of £694.6 million ($950 million).

The company's management now says that the turbulent nature of the video games market since it went public in 2021 has meant that it has "faced the ongoing challenge of delivering growth in line with market expectations despite those difficult sector conditions".

Devolver's directors also believe that its current share price "does not reflect the true market value" of the indie label.

Since going public, Devolver's share price has dropped by 96.27%, bringing the company's market cap down to £34.64 million ($46.63 million).

Going private is also estimated to save the company around $1.6 million per year.

"Devolver and its board are seeking shareholder approval to delist, believing becoming a private company is in the best interests of Devolver, its employees, its partners, and its Shareholders as a whole," a spokesperson for the company told GamesIndustry.biz.


Source link
Related Topics:Gaming

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.