Technicolor announced that it has sold the majority of its 50% stake in Screenvision US to Shamrock Capital Growth Fund II in return for $60 million in cash and will retain a minority equity position.
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Unedited press release follows:
Technicolor Sells Majority of its Stake in Screenvision
Retains a Minority Shareholding and Continues to be the Provider of Film and Digital Services to Screenvision
PARIS–(September 27, 2010) – Technicolor (Euronext Paris : FR0010918292 ; NYSE : TCH) today announced the sale of the majority of its 50% stake in Screenvision US to Shamrock Capital Growth Fund II, a leading private equity fund focused on media, entertainment and communications, in return for $60 million in cash and will retain a minority equity position. This transaction falls within the strategic process initiated by the Group in 2009 with the objective to refocus on its customer base of content creators and network service providers.
Key Elements of the Transaction
- In exchange for a portion of its 50% ownership in Screenvision, Technicolor will receive $60 million in cash and will retain an 18.8% interest in a newly-formed Screenvision holding company.
- Technicolor will continue to be Screenvision’s provider of both film and digital services. The film processing & distribution agreement extends through end of life.
- Technicolor will retain one seat on the Board of Screenvision
- Technicolor will apply the $60 million proceeds towards repayment of the DPN.
“Following the announcement of our broadcast business disposal in July, the sale of our stake in Screenvision is another important milestone in our disposal program”, said Frederic Rose, Chief Executive Officer of Technicolor. “We will keep a minority stake in Screenvision due to our close business relationship and will continue to be Screenvision’s provider of both film and digital services.”
The transaction is pending regulatory approval and customary closing conditions and is expected to close in the fourth quarter 2010.
Technicolor is a company listed on NYSE Euronext Paris and NYSE stock exchanges, and this press release contains certain statements that constitute “forward-looking statements” within the meaning of the “safe harbor” of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could cause actual results to differ materially from the future results expressed, forecasted or implied by such forward-looking statements. For a more complete list and description of such risks and uncertainties, refer to Technicolor’s filings with the U.S. Securities and Exchange Commission and its filings with the French Autorité des marchés financiers.
With more than 95 years of experience in entertainment innovation, Technicolor serves an international base of entertainment, software, and gaming customers. The company is a leading provider of production, postproduction, and distribution services to content creators and distributors. Technicolor is one of the world’s largest film processors; one of the largest independent manufacturers and distributors of DVDs (including Blu-ray Disc); and a leading global supplier of set-top boxes and gateways. The company also operates an Intellectual Property and Licensing business.