Mark Androvich
19:09 (BST)
17/07/2007
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Ubisoft sells stake in Gameloft
Will continue "operational level" collaboration
Ubisoft has announced that it sold its 19 per cent share in Gameloft to Credit Agricole's corporate and investment bank, Calyon.
"The video game market offers numerous internal and external growth opportunities," said Yves Guillemot, chief executive officer of Ubisoft. "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."
Ubisoft sold 13,367,923 shares, representing 18.89 per cent of Gameloft's capital, at a share price of 6.08 Euro, based upon the closing price on July 12th.
Ubisoft entered into an equity swap agreement with Calyon under which Calyon has 24 months to sell the Gameloft shares on the market. Ubisoft will recognize the difference in value at the time that Calyon sells the shares. The investment has a balance sheet value of 34 million Euro, or an average of 2.54 Euro per share.
Guillemot indicated that Ubisoft and Gameloft would continue their collaboration, specifically concerning the utilization of Ubisoft's brands on mobile phones.
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