French digital video specialist Technicolor has confirmed that it will start selling up to €191mn worth of new shares to US equity fund Vector Capital Group on Monday 16th July.
The process will be undertaken in two stages of capital increases: the first will start next Monday and will be reserved to Vector, which will pay €2 per share, while the second will also be open to other parties and last from July 18th to August 2nd, with Vector retaining the right to buy as much as 75% of the shares put up for sale at €1.56 per share.
Vector Capital Group is expected to hold between 18% and 29.94% of Technicolor’s equity following the process, which was approved last month in a general meeting of its shareholders.
The capital raised by this new issue of shares is expected to allow Technicolor to reduce its debts and focus on areas such as digital media services, where the company holds numerous patents.
Swedish telecoms equipment provider Ericsson completed its acquisition of the Broadcast Services Division of Technicolor earlier this month, paying €19mn for the division – more details here.