JP Morgan To Increase Stake In France's Technicolor
May 03 2012 - 3:34AM
Dow Jones News
Technicolor SA (TCH.FR), the French cinema production services
provider and manufacturer of television set-top boxes, said
Thursday it will launch a capital increase of up to EUR158 million
which will be acquired by JPMorgan Chase.
The company said the capital increase will strengthen its
balance sheet, with 80% of the net proceeds of the capital increase
used to pay down debt. It will also help it implement its strategy
plan which includes expanding its innovation pipeline and licensing
business, developing services for digital media markets,
consolidating its activities and expanding geographically.
The stake will be acquired by investment vehicle Jesper
Cooperatief, jointly owned by One Equity Partners--the private
investment arm of JPMorgan Chase--and JPMorgan Chase & Co.
(JPM), which already holds a 1% stake in Technicolor, Technicolor
said.
Following the transaction, Jesper Cooperatief will--including
the 1% stake held by JPMorgan Chase & Co.--hold an interest of
between 25% and 29.96% of the issued share capital of
Technicolor.
On Wednesday, Technicolor asked the stock market to suspend
trading of its shares after it received a proposal from an
unidentified international institutional investor to take a
minority stake in the company.
Also on Wednesday, French Industry Minister Eric Besson said the
company's business had suffered when tariffs on TV set-top boxes
were lifted in early 2012 and a contract with France Telecom SA
(FTE.FR) was cancelled.
-By Nadya Masidlover, Dow Jones Newswires; +33 1 4017 1740;
nadya.masidlover@dowjones.com
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