Foreign media Insider Gaming and well-known uncle Tom Henderson have just reported that the growing coalition of shareholders has sent an open letter to Ubisoft, demanding that legal proceedings be initiated over the recently announced transaction between Ubisoft and a subsidiary of Tencent. The core appeal is to convene an extraordinary general meeting to give shareholders the right to vote on two key resolutions.

According to the terms of the transaction, Ubisoft will incorporate its three core IPs "Assassin's Creed", "Far Cry" and "Rainbow Six" into the newly established subsidiary, and exchange 40% of the equity of the subsidiary for Tencent's capital injection of 00 million euros (the overall valuation of the subsidiary is 0 billion euros). However, shareholders questioned the transaction with the following issues:

Suspicion of Conveyance of Benefits: The Guillemot family now holds less than 10% of Ubisoft's economic interest, but has consolidated control through a complex transaction structure

Circumvention of public offers: Alleged circumvention of the French Securities and Exchange Commission's mandatory tender offer rules

Shareholder interests are damaged: Ubisoft's stock price plummeted 20% after the deal was announced, and its market value evaporated by more than 0%

The letter demanded that Ubisoft change the transaction to a direct asset sale, with Tencent paying a consideration of no less than 10 billion euros (current subsidiary valuation). Upon completion of the transaction, a cash payment of EUR 0 per share will be distributed to shareholders (EUR 0 billion in total), while EUR 0 billion will be retained to cover the company's remaining net debt. At the same time, Tencent is prohibited from participating in the vote because of its direct interest in the transaction. and restricting the voting rights of Guillemot Brothers Holding Company to only its non-Tencent affiliated shares.

The letter mentions that the market has shown its attitude with a plunge and that the design of the trade is fundamentally flawed. Without immediate intervention, the company may continue to carry out asset sales or equity dilutions that are detrimental to shareholders. A simple vote at the extraordinary general meeting could give shareholders a cash return of €23 per share (more than double earnings at the current share price) and restore trust in Ubisoft. Call on all minority shareholders to join in and act before the damage becomes irreversible.