Vivendi Sells its Entire 27% Share of Ubisoft
The threat of a Vivendi Ubisoft takeover is no more. Vivendi has agreed to sell its 27.3% stake in the French publisher. Ubisoft announced the news today, stating that the company will purchase back 9,090,909 of its own shares, and that the Guillemot Brothers SE will agree to purchase 2.7% of capital shares (raising their share to 18.5%).
Additionally, Chinese company Tencent will acquired 5% of Ubisoft shares, and this will lead to a “strategic partnership that will significantly accelerate the reach of Ubisoft franchises in China.”
“The evolution in our shareholding is great news for Ubisoft,” said CEO Yves Guillemot. “It was made possible thanks to the outstanding execution of our strategy and the decisive support of Ubisoft talents, players and shareholders. I would like to warmly thank them all. The investment from new long-term shareholders in Ubisoft demonstrates their trust in our future value creation potential, and Ubisoft’s share buy-back will be accretive to all shareholders. Finally, the new strategic partnership agreement we signed will enable Ubisoft to accelerate its development in China in the coming years and fully leverage a market with great potential.”
Here’s more on the Tencent deal:
Ontario Teachers’ has committed to acquire 3,787,878 Ubisoft shares (3.4% of capital), equivalent to approximately €250 million and Tencent has committed to acquire 5,591,469 Ubisoft shares (5.0% of capital). These investments are made at a price of €66 per share and do not grant any representation on Ubisoft’s board of directors. Tencent has also undertaken not to transfer its shares nor to increase its shareownership and votings rights in Ubisoft.
As part of the transaction, Ubisoft and Tencent have also signed a strategic partnership agreement that will significantly accelerate the reach of Ubisoft franchises in China in the coming years.
The entry of these two high-profile investors in Ubisoft’s share capital validates Ubisoft’s strategy and confirms the value creation potential for its shareholders in coming years.
Finally, the company announced that the “Ontario Teachers’ has committed to acquire 3,787,878 Ubisoft shares (3.4% of capital), equivalent to approximately €250 million.”