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NewGame Capital, the investment vehicle backed by bwin.party digital entertainment, has sold off its entire stake in London-listed operator Gaming Realms.

Gaming Realms confirmed Friday that it has been notified by NewGame that the investment vehicle no longer holds a notifiable interest in the business.

At the end of last year, NewGame held 20,374,768 shares in Gaming Realms, equivalent to 10.44 per cent of the issued share capital.

NewGame said that its controlling shareholder, bwin.party, has been engaged in a programme of non-core asset disposals since Autumn of last year. As a result, NewGame's holding in Gaming Realms has now been placed with new and existing shareholders.

Gaming Realm chairman Michael Buckley thanked bwin.party for its support over the past few years, and said that he was pleased with the level of demand for shares in Gaming Realms.

He said that the broader shareholder base would increase the operator’s free float and provide additional liquidity to its shareholders.

As a result of the placing, a number of Gaming Realms’ directors have purchased further ordinary shares of 10 pence each, at a price of 20 pence per share.

Chairman Buckley has purchased 1,400,000 shares to bring his total holding to 18,000,000 shares, or 9.22 per cent of the company’s total issued share capital, while chief executive Patrick Southon has increased his stake to 10,897,039 shares (5.58 per cent of the share capital) by purchasing an additional 500,000 shares.

Directors Jim Ryan and Atul Bali both purchased 1,000,000 shares in the company. This increases Ryan’s total holding to 1,384,615 ordinary shares, or 0.71 per cent of the issued share capital. Bali had not previously had any shares in Gaming Realms but now owns 0.51 per cent of the company's issued share capital.

NewGame was established in 2011 by Gaming Realms founders Simon Collins and Patrick Southon. They invested £1m in the venture, with bwin.party providing a £15m commitment.

The business made investments in social games developer Avatingo and mobile studio AlchemyBet in 2011 and 2012 respectively, with both businesses acquired by Gaming Realms.

It is now being wound up as a direct consequence of bwin.party's focus on its core gaming assets.

Shares in Gaming Realms plc (Co.Data)(AIM:GMR) are currently trading unchanged at 32.50 pence per share in London this morning, while shares in bwin.party digital entertainment plc (Co.Data)(LSE:BPTY) have dropped 3.36 per cent to 86.26 pence per share.

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