A group of minority shareholders, led by AJ Investments, is pressuring Ubisoft to renegotiate the terms of its recent agreement with Tencent’s subsidiary. The demand was formalized through an open letter, accessed by Insider Gaming, which also calls for an Extraordinary General Meeting to allow shareholders to vote on the transaction.
The agreement in question involves the transfer of rights to three of Ubisoft’s most valuable intellectual properties – Assassin’s Creed, Far Cry, and Rainbow Six Siege – to a new subsidiary. In return, Tencent will invest €1.16 billion, acquiring a 25% stake, implying a pre-money valuation of €4 billion.
AJ Investments argues that shareholders are unsure how the transaction will benefit the company and points to the market’s negative reaction as evidence that the transaction structure is problematic. Since the announcement, Ubisoft’s shares have dropped over 20% in unusually high trading volume.
The open letter presents two resolutions to be voted on at the EGM. The first proposes the restructuring of the direct asset sale agreement to Tencent, ensuring a value of at least €4 billion. The second suggests the distribution of an extraordinary dividend of €23 per share, totaling €3 billion, with the remaining amount used to cover the company’s debt.
Another issue raised by shareholders is the possible intention of Ubisoft’s management to structure the transaction to avoid mandatory rules on public offers. There are also concerns about the role of the Guillemot family, founders of Ubisoft, which currently holds less than 10% of the company’s economic capital but could strengthen their influence with this operation.
The request also includes a call for Tencent to be prevented from voting at the EGM, due to its direct interest in the negotiation outcome, and for the voting rights of Guillemot Brothers Holding to be limited to shares not linked to Tencent.
The market reacted negatively due to uncertainty about Ubisoft’s future and investors’ concerns about how the company intends to manage its intellectual property and governance structure. It remains to be seen whether Ubisoft will meet the shareholders’ demands and if there will be a reassessment of the agreement terms.
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