CD Projekt RED’s Call for Extraordinary Shareholders Meeting Leads to Hostile Takeover Rumors
The Witcher developer CD Projekt RED has issued a call for an extraordinary general meeting of shareholders on November 29, which has resulted in Polish media and investors wondering if the studio is preparing itself to fight a potential hostile takeover. What has people speculating are three of the points on CD Projekt RED’s agenda for the meeting, which may or may not be pointing towards preventative measures.
Thanks to Reddit user boskee, here’s a translation of the agenda:
- Vote on whether or not to allow the company to buy back part of its own shares for 250 million PLN ($64 million)
- Vote on whether to merge CD Projekt Brands (fully owned subsidiary that holds trademarks to the Witcher and Cyberpunk games) into the holding company
- Vote on the change of the company’s statute.
And here’s an explanation that accompanies the above:
The proposed change will put restrictions on the voting ability of shareholders who exceed 20% of the ownership in the company. It will only be lifted if said shareholder makes a call to buy all of the remaining shares for a set price and exceeds 50% of the total vote.
According to the company’s board, this is designed to protect the interest of all shareholders in case of a major investor who would try to acquire remaining shares without offering “a decent price”.
Polish media (and some investors) speculate, whether or not it’s a preemptive measure or if potential hostile takeover is on the horizon.
Let’s just hope this isn’t another Vivendi-Ubisoft kind of case.
What do our readers think?