BROKER VIEWS9 Nov 2009 09:23
Inspired Gaming Group (INGG, 9.55p, £7.09m) Trading update for the year ending September confirms the 52 weeks performance was in-line with management expectations and is pleased to have received expressions of interest in the group from a number of parties. The group ended the period with a lower net debt of £55.1m - our key reason for caution. The group’s preference shares are a barrier to the group being sold as the indications would not enable the pref’s to be redeemed at their face value of £1 – hence the proposal to reorganise the issued share capital into only ordinary shares. The reorganisation would give 90% of the new issued share capital to the preference holders, while existing ordinary shareholders will hold just 10%. Why an ordinary shareholder would support this is hard to see… a continued SELL recommendation.