May 04, 2012 - 01:43 PM GMT
Technicolor has announced that it plans to launch a capital increase of up to €158 million, a stake to be acquired by an investment vehicle jointly owned by One Equity Partners, the private investment arm of JPMorgan Chase, and JPMorgan Chase & Co. This will, said Technicolor, help to strengthen its balance sheet and enhance its capabilities to implement its ‘Amplify 2015’ strategic roadmap. The planned capital increase, which is subject to shareholder approval, will also contribute to stabilizing Technicolor’s shareholder base.
One Equity already holds 1% of Technicolor’s equity and plans to increase its stake as part of the transaction to support Technicolor’s publicly disclosed strategy. David Walsh, Managing Director at One Equity Partners said: “We believe that the company has defined a strategy that will deliver long-term value to Technicolor’s shareholders. We look forward to working closely with management to help it execute this strategy by investing for growth, enhancing market-leading positions and delivering upon its financial objectives.”
Technicolor had requested, the day before the announcement, that trading in its shares be suspended ahead of the imminent Board of Directors meeting, where the Board would “review a proposal received from an international institution to invest and take a minority stake in Technicolor to support its strategy and its Amplify 2015 roadmap”.
Frederic Rose, Technicolor CEO,said: “I am delighted that JPMorgan plans to make a substantial investment in Technicolor to become a long-term shareholder in the Company. The capital increase we are planning will provide the Company with a stronger financial structure and a stable shareholder base to implement its growth strategy. The planned investment is a strong evidence of confidence in Technicolor and an endorsement of our strategy and growth potential.”