Electronics Boutique taps market for Euro growth
Electronics Boutique, the UK's biggest games retailer is issuing 17.2 million news shares to fund expansion in continental Europe.
The price for the new issue has not yet been announced - presumably, broker Hoare Govett is sounding out institutional shareholder opinion. No doubt there will be a hefty discount to the company's share price immediately before today's announcement.
EB has moved into Spain and Sweden in recent weeks (picking up pieces after the implosion of Gameplay, a rival retailer).
It reckons that new console formats will stimulate rapid growth in the European games market. And it says that like-for-like sales were up 19 per cent in the 21 weeks to 24 June 2001.
Last month, Rage Software, a UK games publisher, secured a £20m facility, a mixture of debt and equity, also to fund the expected growth surge. ®