A group of minority shareholders and a coalition of institutional investors have published an open letter demanding legal proceedings regarding the recently announced deal with Tencent's subsidiary. They argue the current agreement terms undermine corporate governance and require fundamental restructuring.

The document, addressed to Ubisoft management and obtained by Insider Gaming, insists on convening an Extraordinary General Meeting (EGM). This format is designated for urgent matters requiring immediate attention before the next annual meeting.

Ubisoft Montréal Studio BuildingImage: montreal.ubisoft.com

The primary demand concerns fundamentally altering the Tencent deal structure. Shareholders propose an alternative scenario involving direct intellectual property sale for the minimum declared €4 billion - a sum previously agreed by both parties. In its current form, they argue the transaction offers no clear benefits to the company or its investors.

The second fundamental point involves voting on special dividend distribution post-deal. The proposed scheme suggests €23 per share payout (totaling approximately €3 billion) while maintaining the shareholder structure.

These demands follow Ubisoft's 24% stock plunge after the deal announcement, reflecting market skepticism. Investors express concerns the transaction structure may:

  • Circumvent mandatory offer procedures;
  • Artificially strengthen the Guillemot family's position (holding under 10% of shares);
  • Set a precedent for spinning off key assets (Assassin's Creed, Far Cry, Rainbow Six).

Establishing a separate legal entity for three core franchises amid stock collapse has created a confidence crisis, questioning the company's strategic future. The situation worsens considering AJ Investments' previous attempts to challenge Ubisoft management's corporate decisions.

Main image: ubisoft.com

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