Shareholders of French technology company Technicolor have approved a bid from investment firm Vector Capital Corporation that will lead to a capital increase of between €167 million and €191 million.
The agreement will see Vector holding between 18% and 29.94% of Technicolor’s share capital. The decision from Technicolor’s shareholders comes shortly after they rejected an offer from JP Morgan. According to reports, they were unhappy with a clause that would enable JP Morgan to withdraw too easily from the agreement. The board also rejected a second clause that involved a demand for indemnity by JP Morgan in the case of negotiations breaking down.
Technicolor said it would use the capital injection to expand its innovation pipeline and licensing business, to develop innovative solutions to address expanding digital media market and to consolidate its activities and expand geographically.