Shareholders in beleaguered French digital video specialist Technicolor have overwhelmingly backed an offer by San Francisco-based Vector Capital to take a 30% stake in the company, with JPMorgan’s counteroffer rejected by 95% of shareholders.
Vector’s offer got 91% approval during the vote, despite the Technicolor board recommending shareholders to vote for JPMorgan’s offer. The board of directors rejected proposals submitted by JPMorgan last week to revise its original offer, deeming the new terms to be unfavourable – more details here.
The offer finally tabled by Vector Capital is worth €191 for a stake of just under 30%, made up of a cash offer of €2 per share for a 17.5% stake, topped up by subscribing to a rights issue for the remainder.
“We are neither as large nor as old as JPMorgan,” said Alexander Slusky, founder and managing partner of Vector Capital. “But the team that we have assembled can address the challenges and opportunities your company is facing.”
Technicolor recently confirmed that its set-top box manufacturing facility in the French city of Angers (Maine-et-Loire department) had become insolvent, and petitioned the Nanterre Commercial Court (France) to open rehabilitation proceedings (“redressement judiciaire”) for Thomson Angers, which owns the facility. More details here.
In its latest results, Technicolor reported that the turnaround plan for its Connected Home division (which produces set-top boxes) started to generate some improvements: fixed costs at its Manaus, Brazil facility were cut by two percentage points, and non quality costs are expected to decrease over the course of the year.