David Beckham-backed Guild Esports set for takeover by US-based DCB Sports
05/08/2024 08:35
Aug 5 (Reuters) - Shares in David Beckham-backed Guild
Esports GILDG.L surged more than 54% in early trading on
Monday, after the gaming firm said it is planning to agree to a
takeover offer from California-based investment management
company DCB Sports.
The financial details of the transaction were not disclosed
by Guild Esports, which last week said it was "actively
exploring" a range of options to allow it to meet its short-term
liabilities.
Shares of the gaming firm, which debuted in late 2020 with a
market capitalisation of 41.2 million pounds ($52.6 million),
have slumped about 99% since then.
"Should the transaction complete, DCB Sports will assume and
run the Guild brand, backstop future working capital
requirements for the private business, provide ongoing capital
sufficient to allow it to operate on a stable financial
platform," the London-listed company said in a statement.
The potential transaction includes all its assets and
assumption of liabilities, it said, adding that this would be
DCB Sports' first investment in esports.
Former England soccer captain Beckham is a founding
shareholder and currently the sixth-largest in Guild with a
3.05% stake, according to LSEG data.
($1 = 0.7828 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Varun H K)
((abyjose.koilparambil@thomsonreuters.com))