Originally, Tencent held less than 5% of Ubisoft’s capital, a totally classic engagement for the Chinese empire that put marbles on everything that moves, but it’s just taking a new twist. As explained in Ubisoft’s press release tonight, Tencent has just acquired a minority stake in Guillemot Brothers Limited, the family holding company that controls Ubisoft.
The total equity investment is 300 million euros (200 million euros for the acquisition of securities and 100 million euros for capital increase), and Tencent owns 49.9% of the capital and 5% of the voting rights. Not at Ubisoft, but at Guillemot Brothers Limited, be careful.
Undoubtedly, Tencent has also extended a loan to Guillemot Brothers Limited, which will allow it to refinance its debt 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 has no approval or operational veto power.“, stressed the press release.
Ubisoft embraces Tencent…not planning for a rainy day
Nonetheless, the “Extended Concert,” now formed by the Guillermo and Tencent families, will likely increase its participation to 29.9% of Ubisoft’s capital or voting rights. That said, Tencent appears to be a way for the Guillermo family to cement Ubisoft’s position as a major shareholder. Tencent itself was authorized to increase its stake in Ubisoft from 4.5% to 9.99% of capital and voting rights.
but not more than. To be prudent, Ubisoft still has a clause that prohibits Tencent from selling its Ubisoft shares within 5 years, especially not to increase its stake in Ubisoft to more than 9.99% of Ubisoft Capital and voting rights within 8 years. The Guillemot family also has priority in the case of Tencent’s sale of Ubisoft’s stake.
“After this operation, Ubisoft’s governance will remain unchanged, and Tencent will no longer have the right to veto operations.underscoring the battle we remember it had with Vivendi’s onslaught a few years ago. If Vincent Bolloré probably didn’t have much to offer Ubisoft, what’s the case with Tencent Not so much, Tencent’s strategic partnership is developing major Ubisoft franchises on mobile as well as several Ubisoft PC games in China.
“This renewal with Tencent has strengthened the anchoring of Ubisoft’s reference equity to the founders and provided the necessary stability for its long-term development.“, commented Ubisoft CEO Yves Guillemot.”As Ubisoft continues to develop immersive gaming experiences and bring many of Ubisoft’s best-known AAA franchises to mobile devices, we’re excited to expand our partnership with the Guillemot family of founders.” commented Liu Chiping, president of Tencent.
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