Ubisoft Announces the Sale of its Stake in Gameloft

Ubisoft Announces the Sale of its Stake in Gameloft

Today Ubisoft, one of the world’s largest video game publishers, announced that on July 12, 2007 it sold the 13,367,923 shares it owned in Gameloft (representing 18.89% of the company’s capital) to Calyon, Crédit Agricole Group’s Corporate and Investment Bank. The sale price was €6.08, based on Gameloft’s closing share price on July 12, 2007.

Ubisoft has also entered into an equity swap agreement with Calyon under which Calyon has 24 months to sell the above-mentioned shares on the market and any and all changes in the Gameloft share price compared with Calyon’s purchase price of €6.08 will be recorded in full by Ubisoft. This transaction will therefore only impact Ubisoft’s income statement and generate cash inflows when Calyon sells the Gameloft shares on the market. At that time, Ubisoft will recognize the difference between the value of the shares sold by Calyon and the value of the investment in Ubisoft’s balance sheet (€34 million at March 31, 2007, or an average value of €2.54 per share) under “gain/loss from operations of discontinued business segment”.

Yves Guillemot, chief executive officer of Ubisoft, stated: “The video game market offers numerous internal and external growth opportunities. We have therefore decided to sell our stake in Gameloft in order to focus on Ubisoft’s expansion and strengthen our ability to seize all such growth opportunities. Following this sale Ubisoft and Gameloft will continue their productive collaboration at a purely operational level, particularly concerning the utilization of Ubisoft’s brands on mobile phones.”

Read the complete Press Release