Ubisoft announces that Tencent has acquired a minority stake in Guillemot Brothers Limited shares and has entered into an agreement with the company’s founders.
Yves Guillemot, CEO and co-founder of Ubisoft, commented:
“The expansion agreement with Tencent further reinforces Ubisoft’s core participation around its founders and provides the company with essential stability for its long-term development.” and completed:
“In a context of convergence of platforms and business models, this transaction, which validates our strategy and highlights the strong intrinsic value of the assets we have built over the years, is excellent news for our teams, gamers and shareholders. Tencent is a strategic partner to many leading companies in the industry, who have created some of the most amazing games in the industry. This transaction reinforces our ability to create strong value in the years to come.”
Martin Lau, president of Tencent, said:
“The Ubisoft team has demonstrated an impressive ability to consistently create world-class entertainment, and has a diverse portfolio of top brands, including some of the most successful franchises in the industry. We are excited to expand our involvement with the founders, the Guillemot family, to support Ubisoft to continue developing immersive gaming experiences and to bring some of Ubisoft’s most popular AAA franchises to mobile. This agreement is also in line with our philosophy of investing alongside creative founders with complete confidence that they will take their companies to new heights.”
Tencent’s investment in Guillemot Brothers Limited is €300 million (€200 million share acquisition and €100 million capital increase), with an implied valuation for the company of €80 per share. In addition, Tencent will provide Guillemot Brothers Limited with an unsecured long-term loan to refinance its debt and provide additional financial resources that Ubisoft can use to acquire capital.
Guillemot Brothers Limited remains exclusively controlled by the Guillemot family. Tencent will not be represented on its Board of Directors and will not obtain any consent or veto rights over the deal.
The expanded deal could increase the Guillemot family’s stake to 29.9% of the company’s capital or voting rights. Within this limit, Guillemot Brothers Limited and the Guillemot family may increase their equity interest in Ubisoft. In addition, the brand’s Board of Directors authorized Tencent to increase its direct stake in Ubisoft from 4.5% to 9.99% of the capital or voting rights.
Tencent will not be able to sell its Ubisoft shares for a period of 5 years (apart from giving the Guillemot family a preemptive right) and will not be able to increase its holding in Ubisoft beyond 9.99% of Ubisoft’s capital and voting rights for a period of eight years.
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