Ubisoft stops Vivendi takeover

[johnhoftb]

TL;DR: Vivendi agrees to sell all of its stocks in Ubisoft back to them.

https://finance.yahoo.com/news/ubiso...171300865.html

Paris - March 20, 2018 - Today, Ubisoft announced that it has signed an agreement with Vivendi for its full exit from Ubisoft`s share capital, with the sale of all Vivendi`s 30,489,300 shares. The transaction includes an investment by two new long-term investors, the Relationship Investing arm of Ontario Teachers` Public Equities division, and Tencent, a share buy-back by Ubisoft, an acquisition of shares by Guillemot Brothers SE and an Accelerated Bookbuilding with institutional investors. Following the implementation of the transaction, Vivendi will no longer hold any shares in Ubisoft, and has committed not to acquire any shares in Ubisoft for 5 years.

As part of the transaction, Ubisoft and Tencent have also announced today a strategic partnership that will significantly accelerate the reach of Ubisoft franchises in China in the coming years.

Yves Guillemot, CEO and Co-Founder, said: "The evolution in our shareholding is great news for Ubisoft. 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."

"Today, Ubisoft is fully reaping the benefits of our long-term strategy and the successful transformation towards a more recurring and profitable business. Ubisoft is perfectly positioned to capture the numerous video game growth drivers in the coming years. We are focused more than ever on delivering on our strategic plan."

Investment from new long-term shareholders in Ubisoft

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.

Ubisoft share buy-back

Ubisoft agreed to buy back up to 9,090,909 of its own shares (8.1% of capital) from Vivendi through a structured transaction taking the form of a forward sale of Vivendi shares to Crédit Agricole Corporate and Investment Bank (CACIB), and a forward buy-back mechanism of shares from CACIB by Ubisoft, enabling Ubisoft to progressively buy-back shares from 2019 to 2021. This buy-back will be structured through a derivative product whereby Ubisoft will enter into a pre-paid forward agreement on part of the shares, with settlement in shares at maturity in 2021 or by anticipation, and for the remainder of the shares, a total return swap with settlement either at maturity or by anticipation at Ubisoft`s discretion, either in cash (Ubisoft either benefiting or supporting the variation in the value of the relevant shares) or with a settlement in shares against the payment of the price for such shares. The share buy-back will be financed mainly through Ubisoft`s existing financial resources. In the event of an increase in the size of the accelerated private placement, the number of shares that are bought back by Ubisoft will be reduced accordingly.

These acquisitions will be made at a price of €66 per share.

Shares bought-back are primarily intended to be cancelled with an accretive effect for all Ubisoft shareholders or used as part of share compensation plans or share-indexed compensation plans for employees.

[dope_danny]

Vivendi must be pissed. They keep trying to buy up companies and people got wise to their schtik years ago. After Activision-Blizzard bought themselves back there was no way Ubisoft was going to do anything but the same.

[zealo]

Good stuff. A Ubisoft under majority Vivendi control would have been no improvement.

[Tech614]

Vivendi must be pissed. They keep trying to buy up companies and people got wise to their schtik years ago. After Activision-Blizzard bought themselves back there was no way Ubisoft was going to do anything but the same.

Vivendi forced Activision-Blizzard to buy themselves out or they where going to liquidate them. Don't get it twisted like it was the other way around. They where done with that investment. That's what they do, buy shares, and sell once they reach a certain value for pure profit.

Make no mistake about it, Vivendi is still making money here. Ubisoft had to of given them "an offer they couldn't refuse" so to speak because a takeover would have been imminent with 1 more round of share purchasing.

[Dhrizzle]

Why did Vivendi want to buy Ubi anyway? I thought the whole reason they sold Activi-Blizz to themselves was because they were far too unwieldy a conglomorate.

[Magistrate]

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.

Why are teachers buying a major game publisher and how did they get so much money.

[johnhoftb]

Why are teachers buying a major game publisher and how did they get so much money.

Pension plan.

[Nazrark]

Why are teachers buying a major game publisher and how did they get so much money.

The Teachers owned the Toronto Maple Leafs for the longest time.

[Tech614]

Why did Vivendi want to buy Ubi anyway? I thought the whole reason they sold Activi-Blizz to themselves was because they were far too unwieldy a conglomorate.

Because that's what they do, buy stocks/companies trending up and sell them for profit later for their investors. It was also easier for them to try and acquire Ubisoft then other video game companies trending up as both are french companies, abiding by french laws which makes the take over much easier.

[Dhrizzle]

Because that's what they do, buy stocks/companies trending up and sell them for profit later for their investors. It was also easier for them to try and acquire Ubisoft then other video game companies trending up as both are french companies, abiding by french laws which makes the take over much easier.

That explains why they buy and sell stocks, but not why they would want to take control of the company. Reading around a bit more, it seems Vivendi had a chance to begin the take over in November but decided not to.

[stellvia]

That explains why they buy and sell stocks, but not why they would want to take control of the company. Reading around a bit more, it seems Vivendi had a chance to begin the take over in November but decided not to.

Sounds like a pump and dump then. Buy up shares to the limit and beyond, then extort a tidy profit from the higher selling price. They may have never intended to go through with the purchase in the first place. Or maybe did initially, but after so much resistance decided on the alternative.

[Schattenlied]

Good stuff. A Ubisoft under majority Vivendi control would have been no improvement.

Honestly though, with how Ubi is right now it likely wouldn't have gotten any worse either.