Tencent Holdings Ltd. intends to increase its stake in French video game publisher and developer Ubisoft Entertainment SA, which has been linked to the Chinese IT giant’s plans to increase its presence in the global video game market. About that writes This is reported by the Reuters news agency, citing its own sources.
Tencent acquired a 5% stake in Ubisoft in 2018 and has now expressed interest in increasing its stake to the founders of French company Guillemot Corp SA. It’s not clear what the stake is, but the source notes that Tencent aims to become Ubisoft’s largest shareholder. Apparently, at this point, the Chinese company expects to buy out the stake held by the Guillemot family, which owns 15% of the French developer’s shares.
Tencent could reportedly offer up to €100 ($101.84) per share as part of a plan to buy Ubisoft stock. In 2018, a Chinese company paid €66 per share and became the owner of a 5 percent stake in Ubisoft. The source notes that the details of the upcoming deal have not yet been agreed and are subject to change.
On the back of Tencent’s interest, Ubisoft’s stock surged 21% and continued to show positive momentum. The value of Guillemot, the holding company in which the Guillemot family owns a majority stake, rose by more than 10%.
According to the source, Tencent will also seek to buy Ubisoft shares held by private shareholders in order to increase its stake and become the French company’s largest shareholder. The latest annual report showed that about 80% of Ubisoft’s shares are owned by private shareholders. Tencent and Ubisoft officials did not comment on the situation.