Technicolor approves Vector Capital plan
Pascale Paoli-Lebailly ©RapidTVNews | 22-06-2012
The General Shareholders’ Meeting of technology group Technicolor has approved the acquisition proposed by Vector Capital Corporation as offered on 25 May 2012 and amended on 13 June.
Winning over JP Morgan’s bid, Vector’s transaction will take place in two steps as Technicolor will issue both 47, 471,506 shares through a reserved capital increase and 61, 643, 316 shares in a capital increase. Vector has committed to subscribe up to three quarters of the amount of the Rights Issue to ensure the success of the operation.
The level of participation of existing shareholders in the Rights Issue will determine Vector’s final stake in Technicolor. At the end, Vector will hold between 18% and 29.94% of Technicolor’s share capital.
These capital increases, of an amount between €167 million and €191 million, will allow Technicolor to strengthen its balance sheet and enhance its capabilities to implement its “Amplify 2015” strategic roadmap.
Technicolor employs 17,000 people worldwide and is reported to have accumulated a €1 billion debt.