Shareholders feel cheated: Ubisoft investors demand renegotiation of Tencent deal
Last week, Ubisoft confirmed that it is working with Tencent to create a new subsidiary to which it will transfer the rights to several of its key franchises.
After this news, the French company's share price plummeted rapidly and not surprisingly, investors are not happy with this state of affairs.
What is known
Authoritative insider Tom Henderson reported that a group of Ubisoft shareholders sent a letter to the company's management demanding to reconsider the terms of the deal with Tencent, as they believe that the interests of shareholders suffered from it.
The AJ Investments fund, which owns several per cent of Ubisoft shares, insists on two points:
- A renegotiation of the terms of the deal with Tencent - shareholders want the asset sale price to be raised to €4bn, with Tencent now known to want to invest €1.6bn.
- Holding a vote among investors to distribute the dividend. Investors demand that if the majority vote in favour of the sale of shares, then Ubisoft is obliged to pay them €23 per share for a total of € 3 billion.
Recall that earlier investment fund AJ Investments demanded the resignation of Ubisoft CEO and co-founder Yves Guillemot, but that went nowhere, as he not only remained in charge of Ubisoft, but will also head a new subsidiary. Something tells us that the next demands of AJ Investments won't be met either.
Source: Insider Gaming