ISSY-LES-MOULINEAUX CEDEX, FRANCE -- (Marketwire) -- 06/11/12 -- Following the filing by Vector Capital on May 25 of resolutions to be submitted to the General Shareholders' Meeting to be held on June 20 (the "Vector Resolutions"), Technicolor received on June 8 in the morning a proposal (the "Amended Proposal") submitted by Jesper Cooperatief U.A. ("JPMorgan), in order to amend the contracts entered into between the two parties on May 2, 2012 (the "JPMorgan Contracts"). The Board of Directors of Technicolor met the same day to review the Amended Proposal.
Under the Amended Proposal, JPMorgan proposed to increase the subscription price of the shares to be issued under the reserved capital increase from EUR1.6 to EUR1.9 per share, so that the total capital increase proceeds would have been comprised between EUR169 million and EUR179 million, compared to the total proceeds implied by the JPMorgan Contracts comprised between EUR147 million and EUR158 million. The Board viewed very favorably JPMorgan's willingness to increase the price of the reserved capital increase.
The Amended Proposal was subject, however, to the introduction of new terms in the JPMorgan Contracts that the Board of Directors deemed unfavorable to the Company and its shareholders.
These new terms, which were not included in the JPMorgan Contracts, included a break-up fee and a new condition making the JPMorgan Resolutions subject to no resolution having an equivalent object (including the Vector Resolutions, as amended, as the case may be) being put to the vote of the General Shareholders' Meeting. Given the obligation under French law to put to the vote of the General Shareholders' Meeting the Vector Resolutions or any amendment presented by a shareholder, this condition would have made the JPMorgan commitments under the Amended Proposal less certain than in the original JPMorgan Contracts. As a consequence, the Board concluded that the firm and irrevocable nature of the JPMorgan Contracts was more beneficial to the Company and its shareholders, and that the uncertainty created by the new condition outweighed the benefits of the Amended Proposal.
In compliance with its obligations under the JPMorgan Contracts, the Company will continue to use its reasonable best efforts to obtain the approval of the transaction agreed on May 2 by the General Shareholders' Meeting to be held on June 20. As a reminder, at its May 29, 2012 meeting, the Board of
Directors unanimously resolved to recommend to the Company's shareholders that they vote in favor of the resolutions relating to the implementation of this transaction.
Technicolor, a worldwide technology leader in the media and entertainment sector, is at the forefront of digital innovation. Our world class research and innovation laboratories enable us to lead the market in delivering advanced video services to content creators and distributors. We also benefit from an extensive intellectual property portfolio focused on imaging and sound technologies, based on a thriving licensing business. Our commitment: supporting the delivery of exciting new experiences for consumers in theaters, homes and on-the-go. Euronext Paris: TCH www.technicolor.com
This condition is specified as follows in the Amended Proposal: "no submission nor approval of any resolutions having an equivalent object, including the resolutions A, B, C, D, E, F [the Vector Capital resolutions] as amended, as the case may be".
Technicolor: UPdate on the JPMorgan proposed transaction: http://hugin.info/143597/R/1618607/516832.pdf
This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: TECHNICOLOR via Thomson Reuters ONE [HUG#1618607]
|07:30 PM||Strata-X Appoints New Chief Financial Officer and Appoints a New Corporate Secretary in Canada|
|07:13 PM||Parliament Passes Legislation to Combat Nuclear Terrorism|
|07:12 PM||Models and Build-Out Now Selling at William Lyon Homes' The Ranch|
|07:01 PM||EHIC Epic Fail- Parents at Risk of Holiday Nightmare This Summer|
|07:00 PM||Aurcana Adopts Shareholder Rights Plan|
|06:37 PM||Franklin Templeton Limited Duration Income Trust Announces Monthly Dividend and Portfolio Management Changes|
|06:36 PM||Franklin Universal Trust Declares Monthly Dividend|
|06:30 PM||IMX Resources Limited: Mt Woods Exploration Work Plan Agreed|
|06:19 PM||Petrolia Cancels its Engagement Letter Relating to a Private Placement|
|06:14 PM||Oracle Mining Announces JDS Energy & Mining to Produce Feasibility Study|
|06:03 PM||The Future of Your Postal Service|
|06:02 PM||ShaMaran Petroleum Corp.: Annual General and Special Meeting Update|
|06:00 PM||Digital Shelf Space Announces Closing of Final Tranche of Financing|
|06:00 PM||San Gold Announces Changes to its Board of Directors and the Acquisition of Shares in Wildcat Exploration|
|05:33 PM||Alexander Energy Ltd. 11-12-56-27W4 Well Recompletion Tests at 260 BOPD|
|05:23 PM||MEDIA ALERT: Secrets of Design for Yield to Be Explored During 50th Design Automation Conference Pavilion Panel|
|05:20 PM||Phoenix Nurse Claims $1 Million Powerball(R) Second Prize Winning Ticket|
|05:19 PM||Experience Fitness Celebrates National Physical Fitness and Sports Month With Special Offers|
|05:17 PM||PageUp People Executive to Explore Trends in Global Talent Management on DriveThruHR Radio Show|
|05:17 PM||Ancestry.com and TLC Team Up for New Season of "Who Do You Think You Are?"|
|05:15 PM||CAPREIT Announces Election of Trustees|
|05:08 PM||Media Industry Leader and Veteran Marianne Gambelli Joins Horizon Media as Chief Investment Officer|
|05:08 PM||Spaces Inc. Applies Innovative Design to B.E. Smith's New Headquarters|
|05:03 PM||Frank Ancona Honda Celebrates Memorial Day Weekend With Special APR & Lease Offers|
|05:01 PM||Prime Dividend Corp.: Regular Monthly Dividend Declaration for Class A and Preferred Share|
|05:00 PM||Analysts International Corporation Announces Results of Annual Shareholder Meeting|
|05:00 PM||Strategy Behind Our Success, We Get in Early: YGE, PXP, XOM and DRYS|
|05:00 PM||BioteQ Secures Contract for Selenium Removal Piloting|
|04:55 PM||Intelligence Squared U.S. Debates "Cutting the Pentagon's Budget is a Gift To Our Enemies" With McCain Institute, June 19th in DC|
|04:53 PM||Canadian Life Companies Split Corp. Monthly Dividend Declaration for Preferred Shares|
|More Press Releases From Marketwired News Releases|