Vector Capital Corporation has tabled an alternative to the JP Morgan-backed capital increase at set-top manufacturer Technicolor.
The American investment fund and turnaround specialist, which currently holds 0.6% of the company’s capital, has tabled six proposals that will be considered by the board today (May 29) ahead of the General Shareholders Meeting on June 20.
Vector is proposing a 17.5% capital increase that would be backed by its investment vehicle Petalite Investments. It would be followed by a rights issue that would take Vector’s holding from its current 0.6% to 30%.
Its initial €1.90 per share offer is a significant mark-up on the €1.60 per share on the table from JP Morgan. Both organisations are proposing a rights issue at €1.56, €0.04 above the level at which Technicolor shares closed on Monday.
The move is unlikely to have any impact on the set-top box facility in Angers, where 330 employees face losing their jobs after the plant filed for insolvency.
