(Boursier.com) — Ubisoft announces today the acquisition of a minority stake by Tencent in the capital of Guillemot Brothers Limited and its entry into the concert of the founders of the Company.
“The expansion of the concert with Tencent strengthens the anchoring of Ubisoft’s reference shareholding around its founders and provides it with essential stability for its long-term development” commented Yves Guillemot, Chairman and CEO of Ubisoft.
“In a context where platforms and economic models are converging, this operation, which validates our strategy and highlights the strong intrinsic value of the assets we have built over the long term, is excellent news for our teams, players and shareholders. “Tencent is indeed a partner-shareholder of reference for many leaders, who have created some of the most exceptional games in the industry. This operation confirms our ability to create strong value over the coming years.”
“Ubisoft’s teams have demonstrated an impressive ability to consistently create world-class entertainment as well as a diverse portfolio of brands including some of the strongest franchises in the industry,” said Martin Lau, President of Tencent. “We are thrilled to extend our engagement with the founders, the Guillemot family, as Ubisoft continues to develop immersive gaming experiences, and bring many of Ubisoft’s best-known AAA franchises to mobile. in our philosophy of investing alongside creative founders, fully confident that they will lead their businesses to new heights.”
Operation Details
Acquisition of an economic stake by Tencent in Guillemot Brothers Limited for 49.9% of the capital and 5% of the voting rights
Tencent’s investment in Guillemot Brothers Limited amounts to 300 ME (200 ME of acquisition of securities and 100 ME of capital increase), showing a transparency value of Ubisoft at 80 euros per share.
In addition, Tencent granted a long-term, unsecured loan to Guillemot Brothers Limited, enabling it to refinance its debt2 and provide additional financial resources that can be used to increase Ubisoft’s capital.
Guillemot Brothers Limited remains exclusively controlled by the Guillemot family. Tencent will not be represented on the board and will have no approval or operational veto rights.
Expansion of the concert around the founders of Ubisoft
The Guillemot family concert vis-à-vis Ubisoft extends to Tencent.
The expanded concert may increase its stake to 29.9% of Ubisoft’s capital or voting rights. Within this limit, Guillemot Brothers Limited and the Guillemot family may each increase their holding in the capital of Ubisoft. In addition, Ubisoft’s board of directors authorized Tencent to increase its direct stake in Ubisoft from 4.5% to 9.99% of the capital and voting rights. Tencent will not be able to sell its Ubisoft shares for 5 years (and beyond that will give the Guillemot family a priority right) and will not be able to increase its stake in Ubisoft beyond 9.99% of the capital and voting rights. of Ubisoft before 8 years.
Following this operation, the governance of Ubisoft is preserved identically and Tencent will have no operational veto right.
The agreement signed with Tencent reflects the richness of Ubisoft’s portfolio of assets, one of the most powerful in the video game industry:
A strong creative and production force of 17,000 talents, structured around the “Lead & Associate” organization stemming from Ubisoft’s global network of studios and which combines high AAA production standards with creative and engineering talents from world class.
The deepest and most diverse portfolio of proprietary brands in the industry, including Anno, Assassin’s Creed, Beyond Good & Evil, Brawlhalla, The Crew, Tom Clancy’s The Division, Far Cry, For Honor, Tom Clancy’s Ghost Recon, Hungry Shark, Just Dance, Might & Magic, Prince of Persia, Rabbids, Tom Clancy’s Rainbow Six, Rayman, Splinter Cell, Trackmania, Watch Dogs.
Robust proprietary technologies, including its state-of-the-art engines (Anvil and Snowdrop), its online services and distribution platform (Ubisoft Connect) and i3D.net, its growing video game hosting business.
As a reminder, the strategic partnership with Tencent concerns the development of mobile titles from several major Ubisoft franchises and the launch in China of several Ubisoft PC titles.