Vivendi to sell 49% of Activision Blizzard for USD 8.2 bln

News General Global 26 JUL 2013
Vivendi to sell 49% of Activision Blizzard for USD 8.2 bln

French telecom and entertainment group Vivendi announced that it will divest over 85 percent of its interest in computer game subsidiary Activision Blizzard for USD 8.2 billion, or USD 13.60 per share. The majority of its shares (429 million) will be acquired by Activision Blizzard. An additional portion (172 million) will be acquired by a consortium of investors (ASAC II LP) including Activision CEO Bobby Kotick and co-chairman Brian Kelly. Vivendi currently owns 61.1 percent or 684 million Activision common shares. Upon completion of this transaction, Vivendi will retain 83 million shares, representing 12 percent of Activision after the transaction. ASAC II LP will own 24.9 percent of the outstanding share capital.

Vivendi will use part of the cash proceeds from the transaction to strengthen its balance sheet and maintain its BBB/Baa2 rating. Its supervisory board will decide how to use the remaining proceeds. The transaction, which is expected to close by the end of September, has been unanimously approved by the Vivendi supervisory board and the Activision board of directors. Both Activision and ASAC II LP have committed debt and equity financing in place. ASAC II LP includes Davis Advisors, Leonard Green & Partners, Tencent and an unnamed a large global institutional investor.

Categories:

General

Companies:

Tencent,  Vivendi,  Activision Blizzard

Regions:

Global

Tags:

Voice services, Data services, Messaging, Games, Wireline, Wireless, Internet Access, Consumer, Digital Music, M&A buyouts & divestments

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