Dear Board of Directors, Flagship Asset Management (“Flagship”) has, on behalf of its clients, acquired an interest in Ubisoft Entertainment (“Ubisoft” or “the Company”) over the course of the last 12 months. As of November 2021, shares in Ubisoft have dramatically underperformed those of its major peers since 2017, and every period in between. In the past year alone, Ubisoft shares have fallen by nearly 40%, erasing over EUR 4 billion from the Company’s market capitalisation.
On the 22nd of May 2021 Grupo Lala announced that its controlling shareholder was making a voluntary offer to buy out minority shareholders for MXN 77.36 per share. This was accompanied by a statement that the controlling shareholder wishes to delist Grupo Lala from the Balsa Mexicana. While this is a modest premium to what the share price was when the deal was announced , it is a level which severely undervalues the company.