Gaming Innovation Group shares surge on B2C sale rumours
Stock price jumps nearly 25% in last two days as operator conducts full business review
Gaming Innovation Group’s (GiG) share price climbed nearly 25% this week amid speculation it could be selling off its B2C business.
The stock opened at 6.3 SEK yesterday and was trading at a high of 8.5 SEK on the Nasdaq Stockholm this morning before giving some gains back this morning.
Hjlamar Ahlberg, an analyst at Kepler Chevereax, confirmed the spike was seemingly driven by rumours of a potential B2C divestment
“It probably could make sense to divest the B2C although I guess the problem is to get a decent price,” he said.
GiG chairman Petter Nylander this morning declined to comment on the potential sell off, saying in a statement: “We remain true to what we said in the third quarter that the board and management have initiated a strategic review, otherwise we will communicate if and when something is clear.”
At the Q3 results, where profits fell 46%, GIG appointed strategic advisors to conduct a strategic review of the company to “identify value-creating opportunities, reduce complexity and improve efficiency within the business”.
B2C revenue across brands including Rizk and Guts was €20.2m for GiG in Q3, down from €24.4m in the prior corresponding period.
B2C EBITDA was an all-time high of €2.4m, leading one analyst today to question the share price surge, asking what sort of multiple GIG could expect to command for a relatively small business showing negative growth trends.