Technicolor shareholders have backed a bid by Vector Capital Corporation that will lead to a cash injection of between €167 million and €191 million.
It follows the rejection earlier this month of a bid by JP Morgan, who were initially thought to be a shoo-in with their original bid, before shareholders bulked at a new clause that added a break-up fee.
Vector tabled its offer on May 25 and later amended it on June 13.
Under the plan, approved by the majority of shareholders, a new rights issue will be made at of €1.56 per share.
Vector has irrevocably committed to subscribe up to 75% of the amount of the Rights Issue to ensure its success. Following the Rights Issue, Vector will hold between 18% and 29.94% of Technicolor’s share capital.
The capital injection will allow Technicolor to strengthen its balance sheet and enhance its capabilities to implement its “Amplify 2015” strategic roadmap under which the French manufacturer aims to expand its innovation pipeline and licensing business.
As a result of the resolutions approved by the General Meeting, two Vector representatives, Alexander Slusky and David Fishman, will sit on Technicolor’s Board immediately upon completion of the Reserved Capital Increase.
