Technicolor's General Shareholders' Meeting approves the capital increases proposed by Vector Capital
June 21, 2012
PARIS -- The General Shareholders' Meeting of Technicolor (Euronext: TCH) met today under the Chairmanship of Denis Ranque, Chairman of the Board, and in the presence of Frederic Rose, CEO, and members of the Board of Directors.
The shareholders approved by a large majority the resolutions relating to the transaction proposed by Vector Capital Corporation ("Vector") in its offer dated May 25 and amended on June 13.
The transaction, agreed by the General Shareholders' Meeting of shareholders, will take place in two steps:
Technicolor will issue 47 471 506 shares through a reserved capital increase to Petalite Investments S.à r.l., an investment vehicle controlled by Vector, at a price of €2.00 per share (the "Reserved Capital Increase");
Technicolor will issue 61 643 316 shares in a capital increase with preferential subscription rights at a price of €1.56 per share (the "Rights Issue"). Vector has irrevocably committed to subscribe up to 75% of the amount of the Rights Issue to ensure its success.
The level of participation of existing shareholders in the Rights Issue will determine Vector's final stake in Technicolor. Following the Rights Issue, Vector will hold between 18% and 29.94% of Technicolor's share capital.
Technicolor (Euronext Paris: TCH; NYSE: TCH)
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