adminDevolver Digital going private would mark a major change for the independent game publisher, which has been publicly traded on the UK’s AIM market since 2021. The company says its current share price does not represent its underlying value and believes leaving the public market could help it focus on long-term priorities. Shareholders are expected to decide on the proposal at the company’s annual general meeting in September.
Image credit: Devolver Digital
Devolver Digital going private: the proposed timeline
Devolver Digital has announced its intention to delist from AIM. The proposal will be put to shareholders at the company’s AGM, scheduled for September 8. If shareholders approve the plan, the company is expected to stop trading publicly on September 16.
These dates depend on the outcome of the vote. Shareholders considering the proposal should review the company’s formal announcements and meeting materials for the full terms and any updates before making a decision.
Why Devolver Digital wants to delist
Devolver first joined AIM in November 2021, at a valuation of £694.6 million ($950 million). Since then, management says the video game sector has experienced difficult and unpredictable conditions. The company has faced challenges in delivering growth at the level expected by the market during that period.
Its directors also argue that the current share price does not reflect the company’s true market value. Since the public listing, Devolver’s share price has fallen by 96.27%, and its market capitalisation has declined to £34.64 million ($46.63 million).
A falling share price and a company’s assessment of its value are related, but they are not the same measure. The proposed delisting would not, by itself, change the reported historical figures; investors should consider the company’s disclosures and the terms of the proposal when assessing what the change could mean for them.
Potential savings and business priorities
Devolver estimates that becoming private could reduce its costs by around $1.6 million per year. The company’s stated rationale is that a private structure would allow its finance, legal and executive teams to spend less time meeting public-market requirements and more time supporting the business over the long term.
The company has described the proposal as being in the interests of Devolver, its employees, partners and shareholders as a whole. The actual outcome, however, rests with shareholders voting on the delisting. The announcement sets out the company’s view; it does not guarantee that taking the company private will improve its financial performance.
What happens next?
The key immediate step is the shareholder vote at the September 8 AGM. If the proposal passes, Devolver is expected to leave AIM on September 16. Until the vote and any required steps are complete, the plan remains subject to approval.
For investors, the practical points to follow are the meeting date, the result of the vote and the company’s formal updates about the proposed delisting. Devolver Digital going private would end its public trading on AIM if approved, while the company’s stated goals include lowering annual costs and focusing more closely on long-term business health.
