Ubisoft announces the sale of its stake in Gameloft
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."
Alain Martinez, chief financial officer of Ubisoft said: "We opted for an equity swap solution as we are confident in Gameloft's capacity for growth. Selecting this approach enables us to inform the market of our exit strategy and to stagger the market placement of the Gameloft shares in order to continue to benefit from the company's development potential over the next two years."
Ubisoft is a leading producer, publisher and distributor of interactive entertainment products worldwide and has grown considerably through a strong and diversified line-up of products and partnerships. Ubisoft has offices in 25 countries and sales in more than 55 countries around the globe. It is committed to delivering high-quality, cutting-edge video game titles to consumers. Ubisoft generated sales of €928 million for the 2007-08 fiscal year. To learn more, please visit www.ubisoftgroup.com.