It takes near 30% equity share in cash-strapped firm
PARIS — Technicolor, which emerged from bankruptcy protection two years ago, has found its white knight: U.S. investment firm JPMorgan Chase & Co. will inject up to €158 million ($195.4 million) for a 29.96% equity share in Technicolor.
The stake will strengthen Technicolor’s balance sheet, reduce debt, stabilize its shareholder base and help the company implement its growth strategy.
Some 80% of the capital increase will be used to pay down debt ranging between $155 million and $165 million, per Technicolor
“The planned investment is a strong evidence of confidence in Technicolor and an endorsement of our strategy and growth potential,” said Technicolor CEO Frederic Rose.
David Walsh, managing director at One Equity Partners, the private investment arm of JPMorgan Chase, said, “We believe that the company has defined a strategy that will deliver longterm value to Technicolor’s shareholders.”
Walsh said One Equity Partners will “work closely with Technicolor’s management to help it execute this strategy by investing for growth, enhancing market- leading positions and delivering upon its financial objectives.”
The holding will be detained by Jesper Cooperatif, an investment vehicle jointly owned by JPMorgan’s One Equity Partners and JPMorgan Chase & Co.
The transaction will be reviewed by Technicolor shareholder during the annual meeting on June 20.
John Hopewell in Madrid contributed to this report