Streamlined SRT process aims to optimize capital management while ensuring resilience The European Central Bank (ECB) is set to accelerate the approval process for Significant Risk Transfers (SRTs) , a move designed to improve capital efficiency for banks while maintaining financial stability. The ECB’s pilot program, scheduled to begin in early 2025 , will simplify procedures and reduce approval timelines, aligning with the growing demand for efficient capital allocation across European lenders. What’s Changing? The ECB, in collaboration with the European Banking Federation , is introducing a pilot program to shorten the SRT approval process. The notification period for SRT transactions will be reduced from three months to two weeks before deal finalization. The information submission requirements will be streamlined to ease regulatory burdens for banks. These changes are expected to make SRT transactions more attractive , all...
Shareholders of Ubisoft Entertainment SA are exploring a buyout strategy that would maintain the Guillemot family's control over the Assassin's Creed video game maker, sources told Reuters.
Key Developments:
Founding Family’s Role: The Guillemot family, Ubisoft’s largest shareholder, is in discussions with Tencent and other investors about financing a management-led buyout. The family has expressed a desire to retain its current level of control as part of any deal.
Tencent’s Position: Tencent, Ubisoft's second-largest shareholder with a nearly 10% stake, is deliberating whether to participate in the buyout. The Chinese tech giant seeks greater influence over board decisions, including cash flow allocation, in exchange for its financial backing—a condition not yet agreed upon by the Guillemot family.
Strategic Goals: Tencent aims to block potential hostile takeovers of Ubisoft by other investors and maintain its gaming business cooperation. However, it may ultimately decide against increasing its stake, considering its current holding sufficient.
Market Reaction:
- Following news of the potential buyout, Ubisoft shares surged 16%, later trading up 12.1% at €13.2 by 1445 GMT.
Challenges:
Share Price Pressure: Minority shareholders, such as AJ Investments, have been advocating for a strategic sale or privatization due to a steep decline in Ubisoft’s stock price. The company's shares hit a decade-low in September after lowering its financial outlook and delaying the launch of Assassin’s Creed Shadows.
Operational Cuts: This week, Ubisoft announced the discontinuation of its XDefiant title, leading to the closure of production studios in San Francisco and Osaka, and scaling down operations in Sydney.
Strategic Review:
Ubisoft has confirmed it is reviewing all strategic options. A company spokesperson reiterated its commitment to stakeholders, though no formal comment was made on the ongoing buyout discussions.
Ownership Snapshot:
- The Guillemot family owns 15% of Ubisoft’s equity and controls 20.5% of voting rights.
- Tencent holds just under 10% of equity and 9.2% of voting rights as of April.
These talks signal a pivotal moment for Ubisoft as it navigates market pressures and internal restructuring, while its founding family strives to maintain influence amid ongoing strategic shifts.
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