Tencent Holdings Ltd plans to increase its stake in the French video game group Ubisoft Entertainment. As the gaming giant turns to the global gaming market, four sources with first-hand knowledge of the matter have spoken.
The largest Chinese social networking and games company, which bought a 5% stake in Ubisoft in 2018, contacted the French company’s founder Guillemot family and expressed interest in increasing its stake in the company, the companies say. sources.
It is not clear how much Tencent wants to own more in Ubisoft, a company worth $ 5.3 billion, but it looks like he’s aiming to become the company’s only major shareholder with an additional stake purchase.
Tencent could offer up to 100 euros per share to acquire the additional stake, said two of the sources familiar with the internal discussions. It paid 66 euros per share for the 5% stake in 2018.
It should be clear, however, that the details of the agreement are not yet finalized and are subject to change. Ubisoft shares were up by 16% after which, according to some reports, there has been a boom since 2010.
Tencent will also seek to acquire shares from Ubisoft’s public shareholders in an effort to increase its ownership and become the largest shareholder. Well 80% of the French company’s shares are owned by public shareholders, according to a latest annual report, definitely a center for Tencent.
For now, Tencent and Ubisoft have declined to comment and representatives of the Guillemot family could not be contacted for comment.
Tencent is very determined to close the deal as Ubisoft is a remarkably important strategic asset.
So stated one of the two sources. At the high end of € 100 per share, Tencent’s offering will be a 127% premium over the average share price of € 44 over the past three months and is close to its historic ceiling of € 108 in 2018.
The most recent news is an upcoming meeting between Tencent’s top executives and family Guillemot. It seems that the company is expanding like wildfire in the gaming world: we remember, in fact, the acquisition of an exclusive PlayStation.