Slusky, Fishman to join board
PARIS — U.S. private equity firm Vector Capital is set to inject €191 million ($240 million) into Technicolor for a 30% stake in the Paris-based company.
Vector’s offer, greenlit Wednesday by Technicolor’s shareholders during their annual meeting, was chosen over JPMorgan Chase’s $200 million bid, made on May 3.
These capital increases will allow Technicolor to strengthen its balance sheet, reduce its debt (estimated at $1.4 billion in late 2011), stabilize its shareholder base and help the company implement its growth strategy.
Technicolor emerged from bankruptcy protection two years ago and is still reportedly struggling financially.
Two Vector representatives, Alexander R. Slusky and David L. Fishman, will sit on Technicolor’s board.
The transaction must be approved by anti-trust authorities.