Ubisoft To Buy Back 4M Shares By The End Of 2017 To Keep Vivendi At Bay
Ubisoft has been trying everything to stop Vivendi from taking over ever since Gameloft was taken over and to maintain its independence Ubisoft is looking to buy back 4 million shares which make a total of 10% of the company’s capital.
However, this measure will only stall Vivendi from taking over instead of just outright stopping them. Ubiosft made a short statement to its investors in which the company revealed its plans to fend of Vivendi from taking over Ubisoft.
According to the company’s CEO, the company has mandated an unnamed investment services provider to buy back its shares. The shareholders are backing Ubisoft CEO Yves Guillemot with his strategy to buy back company’s shares. Vivendi currently owns 27% of the company’s share and if this figure rises to 30% then the company will be bound by law to make an offer to Vivendi.
However, this measure will only stall Vivendi but, Ubisoft plans to cancel the shares once it buys them back. In this way, the stock is retired and can’t be purchased by any interested party. Ubisoft’s buy-back program has already started and will conclude December 29. Also, last month Guillemot Brothers bought back 1.75% of the company’s share for $2 million.
Ubisoft CEO Yves Guillemot doesn’t intend to go down without a fight as according to him, they will beat Vivendi on performance base. According to Ubisoft’s Vice President of live operations, the only thing that made the company successful is its independence and if it is taken away then the company will not be the same.
On the other hand Vivendi has claimed that it doesn’t intend to take over the company and despite Vivendi’s claims that it has no interest in a hostile take over, its actions speak otherwise as the company has increased its shares in the company significantly last year.
Will Yves Guillemot be successful to fend off a hostile takeover? Only time will tell.
Source: Game Industry