Technicolor Sells Stake in Screenvision

Technicolor receives $60M in cash and retains an 18.8% interest in newly formed Screenvision holding company

September 28, 2010

1 Min Read

PARIS -- Technicolor (Euronext Paris : FR0010918292 ; NYSE : TCH) today announced the sale of the majority of its 50% stake in Screenvision US to Shamrock Capital Growth Fund II, a leading private equity fund focused on media, entertainment and communications, in return for $60 million in cash and will retain a minority equity position. This transaction falls within the strategic process initiated by the Group in 2009 with the objective to refocus on its customer base of content creators and network service providers.

Key Elements of the Transaction

  • In exchange for a portion of its 50% ownership in Screenvision, Technicolor will receive $60 million in cash and will retain an 18.8% interest in a newly-formed Screenvision holding company.

  • Technicolor will continue to be Screenvision’s provider of both film and digital services. The film processing & distribution agreement extends through end of life.

  • Technicolor will retain one seat on the Board of Screenvision

  • Technicolor will apply the $60 million proceeds towards repayment of the DPN.

    “Following the announcement of our broadcast business disposal in July, the sale of our stake in Screenvision is another important milestone in our disposal program”, said Frederic Rose, Chief Executive Officer of Technicolor. “We will keep a minority stake in Screenvision due to our close business relationship and will continue to be Screenvision’s provider of both film and digital services.” The transaction is pending regulatory approval and customary closing conditions and is expected to close in the fourth quarter 2010.

    Technicolor (Euronext Paris: TCH; NYSE: TCH)

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