Technicolor to Boost Capital as JPMorgan Raises Stake
(Corrects shares trading in final paragraph.)
Technicolor said it plans to raise as much as 158 million euros in capital through a sale of stock to shareholders and with JPMorgan Chase & Co. (JPM) boosting its stake in the producer of film-making products and technology.
JPMorgan, which owns 1 percent of Technicolor, plans to buy a stake through its One Equity Partners (NBPE) arm, and will own between 25 percent and 29.96 percent of Technicolor, the Paris- based company said in an e-mailed statement.
“The capital increase we are planning will provide the company with a stronger financial structure and a stable shareholder base to implement its growth strategy,” Technicolor Chief Executive Officer Frederic Rose said in the statement.
The two-step capital-raising exercise will include a sale of shares to a JPMorgan-linked investment vehicle for 1.60 euros a shares and a rights offer, or a sale of stock to existing shareholders, at 1.56 euros a shares. JPMorgan’s stake will be determined by the level of participation in the rights offer by Technicolor’s shareholders.
Technicolor shares closed 13 percent higher at 1.599 euros on April 30. The stock was suspended from trading yesterday.
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