By: Reuters, September 7, 2022
Sept 7 (Reuters) – Shares in Ubisoft tumbled on Wednesday after it announced a deal that sees China’s Tencent Holdings (0700.HK) raise its stake in the company, a move which analysts say dampens the prospect of a full sale of the French game maker.
The deal with Tencent Holdings values France’s biggest games developer at $10 billion, or around 80 euros per share, compared with Tuesday’s closing level of 43.5 euros.
It makes Tencent Ubisoft’s single biggest shareholder with an overall stake of 11% but which Tencent can take as high as 17%. Traders said that removed the speculative appeal of Ubisoft shares.
“The prospects of a takeover and a fight for Ubisoft are gone as Tencent is now really (there),” said MidCap’s analyst Charles-Louis Planade.
A London trader said Ubisoft shares were down on “disappointment that it may not be a takeover target as Tencent has increased (its) stake.”
