A minority shareholder and a growing coalition of shareholders have issued an open letter to Ubisoft to initiate legal proceedings around the recently announced Ubisoft and Tencent subsidiary deal.
In an open letter to Ubisoft, which was sent to Insider Gaming, the letter demands that Ubisoft hold an Extraordinary General Meeting (EGM) to give shareholders the right to vote on the recent subsidiary deal. For those not in the know, an EGM is a special kind of meeting that’s held outside of the general annual general meeting (AGM) to discuss significant issues that cannot wait.
The letter, which was sent by the minority shareholder AJ Investments demands that shareholders can vote on two separate resolutions when it comes to the Tencent deal.
Resolution 1 is to renegotiate the Tencent deal and have it restructured into a direct asset sale for no less than €4 billion, which is roughly the valuation already accepted by both Tencent and Ubisoft’s board. AJ Investments says that at the moment, “moment, shareholders have no clarity how the deal that was announced last week will eventually benefit shareholders of Ubisoft.”
Resolution 2 for the EGM would be to vote on a distribution of a Extraordinary Dividend. It’s said that following the sale (if shareholders vote for it), “Ubisoft shall return €23 per share in cash to shareholders (totalling €3 billion), while preserving.”
AJ Investments say that the reason for such extreme measures is because “shareholders are not sure whether they will get a significant benefit from this transaction. Ubisoft’s share price fell by more than 20% on unusually high volume. This signals a clear verdict from investors — the proposed deal is deeply flawed, structured to bypass mandatory public offer rules, and designed to entrench control by the Guillemot family, who now hold less than 10% of the company’s economic interest.”
Following the deal of the announcement and at the time of writing, Ubisoft stock has fallen 24% since the subsidiary deal announcement, which will see three of Ubisoft’s most valuable IP’s move to a new subsidiary.
You can read the full open letter to Ubisoft below:
PRESS RELEASE
AJ Investments and Shareholder Coalition wants clarity on the transaction with Tencent, vote on EGM
Bratislava / Paris – April 2, 2025 – In direct response to Ubisoft’s decision to transfer the IP and related rights of three major gaming franchises (Assassin Creed, Far Cry and Rainbow Siege) into a newly created subsidiary—before raising €1.16 billion from Tencent in exchange for a 25% ownership stake (implying a pre-money valuation of €4 billion)—AJ Investments, alongside a growing coalition of shareholders, is initiating legal proceedings in France.
We are demanding that a French court compel Ubisoft to convene an Extraordinary General Meeting (EGM), giving all shareholders the right to vote on two critical resolutions:
- Renegotiate the Tencent Deal – This transaction must be restructured into a direct asset sale to Tencent for no less than €4 billion, the valuation already accepted by both Tencent and Ubisoft’s board. At the moment, shareholders have no clarity how the deal that was announced last week will eventually benefit shareholders of Ubisoft.
- Distribute an Extraordinary Dividend – Following the sale, Ubisoft shall return €23 per share in cash to shareholders (totaling €3 billion), while preserving €1 billion to cover remaining corporate net debt.
Additionally, we will seek a ruling that:
- Tencent be excluded from voting, due to its direct interest in the outcome of the
transaction. - Guillemot Brothers Holding’s voting rights be limited to their non-Tencent-linked shares.
The market’s reaction to this deal is clear that shareholders are not sure whether they will get a significant benefit from this transaction. Ubisoft’s share price fell by more than 20% on unusually high volume. This signals a clear verdict from investors — the proposed deal is deeply flawed, structured to bypass mandatory public offer rules, and designed to entrench control by the Guillemot family, who now hold less than 10% of the company’s economic interest.
We believe this is a critical moment for shareholders. Without immediate intervention, the company may pursue further asset sales or dilution without delivering value to shareholders. In contrast, a simple vote at an EGM could deliver €23 per share in cash ( €3 billion valuation, source: Euronext outstanding shares for calculation)—more than double the current share price—and restore shareholder trust in Ubisoft’s future.
We suggest that management will explain the benefits of the deal to the shareholders in detail (not 2 A4 pages from where many details are not clear) as the owners of the business and we will have a vote on it. Sell the core IPs to the Tencent as a whole or sell them the 25% stake in a subsidiary that was already announced. Shareholders will choose what they prefer.
We call on all minority shareholders to join us now in this legal effort to protect value and demand accountability. The time to act is today—before the damage becomes irreversible.
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