Activision separation deal cleared
Delaware Supreme Court lifts preliminary injunction to clear the way for transaction to be completed by October 15.
Activision Blizzard announced today that the Delaware Supreme Court has lifted a preliminary injunction preventing the company from buying parent company Vivendi's stake in the game maker.
This effectively clears the path for the company to complete the transaction that will separate Activision Blizzard from Vivendi. The deal is expected to be complete by October 15.
A lower court issued the injunction last month after shareholders sued Activision Blizzard, claiming the transaction would "unjustly enrich" several executives.
In July this year, Activision Blizzard announced its intention to separate from Vivendi. The purchase will see around 429 million shares change hands, totaling roughly $5.83 billion in cash.
Activision CEO Bobby Kotick and co-chairman Brian Kelly are responsible for the purchase of 172 million shares, worth an estimated $2.34 billion. The pair have personally contributed $100 million to secure the sale. As a result, Kelly would become sole chairman under the restructure, with Vivendi retaining a minority 12 percent stake in the business.
The deal was orchestrated by Activision Blizzard's management team and assisted by investors. The intended trade would result in shareholders owning a controlling stake in the business.
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