Tencent acquires a 49.9% economic stake with 5% voting rights in Guillemot Brothers Limited.

Tencent's investment in Guillemot Brothers Limited amounts to €300 million (€200 million share acquisition and €100 million capital increase), at an implied valuation for Ubisoft of 80€ per share.

In addition, Tencent is providing Guillemot Brothers Limited with a long-term unsecured loan to refinance its debt and provide additional financial resources that can be used to acquire equity in Ubisoft.

Guillemot Brothers Limited remains exclusively controlled by the Guillemot family. Tencent will not be represented on its Board of Directors and will not obtain any consent or veto rights over the business.

The expanded concert may increase its stake to 29.9% of Ubisoft's capital or voting rights. Within this limit, Guillemot Brothers Limited and the Guillemot family may each increase their equity ownership in Ubisoft. Additionally, Ubisoft’s Board of Directors has authorized Tencent to increase its direct stake in Ubisoft from 4.5% to 9.99% of the capital or voting rights. Tencent will not be able to sell its shares in Ubisoft for a period of 5 years (and beyond will give the Guillemot family a right of priority) and will not be able to increase its stake in Ubisoft beyond 9.99% of Ubisoft's capital and voting rights for a period of 8 years.

As a result of this transaction, Ubisoft's governance will remain unchanged and Tencent will not have any operational veto rights.

The expansion of the concert with Tencent further reinforces Ubisoft’s core shareholding around its founders and provides the company with the stability essential for its long-term development.” saidYves Guillemot, CEO and Co-Founder, Ubisoft.

“In a context where platforms and business models are converging, this transaction, which validates our strategy and highlights the strong intrinsic value of the assets we have built over the long term, is excellent news for our teams, gamers and shareholders. Tencent is a key shareholder partner for many of the industry’s leaders, who have created some of the most outstanding video games. This transaction reinforces our ability to create strong value over the coming years.”

“The team at Ubisoft has shown an impressive ability to consistently create world-class entertainment along with a diverse portfolio of brands that include some of the most successful franchises in the industry,” said Martin Lau, President of Tencent. “We are excited to expand our engagement with the founders, the Guillemot family, as Ubisoft continues to develop immersive game experiences, and to bring some of Ubisoft’s most well-known AAA franchises to mobile. This agreement also aligns with our philosophy to invest alongside creative founders with full confidence that they will lead their companies to new heights.”

As a reminder, the strategic partnership with Tencent covers the development of mobile titles from several of Ubisoft's major franchises and the launch of several of Ubisoft's PC titles in China.