Vivendi Now Holds More Than 20 Percent of Ubisoft’s Voting Rights
Jesse Lyle |
Jul 19, 2016
Vivendi’s control of Ubisoft continues to grow after the yesterday’s announcement that as of July 14, 2016, they had crossed the legal threshold of 20 percent of voting rights in Ubisoft, hitting 20.2.
The French mass media company made the announcement through a press release on their website. This new area of power will allow stockholders to influence corporate decisions such as policy and board appointment.
Vivendi specified their objectives for the next six months in the post. For those that cannot access the post, they are as follows:
Vivendi’s acquisitions have been financed using its disposable cash;
Vivendi is not acting together with any third party in connection with its investment in Ubisoft and has not entered into a temporary sale agreement concerning Ubisoft’s shares or voting rights;
Vivendi does not hold instruments and is not a party to agreements such as those referred to in I, paragraphs 4° and 4° bis of Article L.233-9 of the French Code de commerce (Trade Code);
Vivendi is considering continuing to acquire shares depending on market conditions;
Vivendi is not considering the launch of a public tender on Ubisoft nor acquiring the control of the company;
Vivendi is hoping to build a fruitful cooperation with Ubisoft;
Vivendi is considering asking for a recomposition of the Ubisoft Board of Directors in order to, among other things, obtain Board representation consistent with its shareholder position;
Vivendi’s investment in Ubisoft’s business sector is part of a strategic vision of operational convergence between Vivendi’s content and platform and Ubisoft’s productions in the field of video games. Since this strategy does not require any modification to Ubisoft’s legal or financial organization, Vivendi is not contemplating any of the transactions referred to in Article 223-17, I, 6° of the AMF Règlement Général (General Regulations)
If Vivendi manages to edge its way over 30 percent, it is in French law that they must table a mandatory takeover bid.