Technicolor has entered into an agreement with Vector Capital and its affiliates for the purpose of terminating the Governance Agreement signed in July 2012. Vector Capital, Technicolor’s largest shareholder with 12.9 per cent of the total share capital, has publicly stated its support of Drive 2020, Technicolor’s new strategic plan as approved by the Board of directors on 18 February, 2015 and looks forward to working within the Board of directors on creating shareholder value.
Technicolor’s Chairman of the Board, Didier Lombard stated: “We are pleased to have reached an agreement with Vector who helped stabilize Technicolor’s shareholder base in 2012 and was instrumental in helping the Company deliver its financial objectives one year early. We will now focus our efforts on implementing the Drive 2020 strategic plan and on continuing to deliver value to Technicolor’s stakeholders.”
Pursuant to this agreement and given Vector’s position as the largest shareholder of the Company, the Board of directors will propose to the Shareholders’ Meeting of 9 April, 2015 to renew the term of office of David Fishman, a Vector representative, as the terms of office of the two Vector representatives expire at the Shareholders’ Meeting. Vector Capital has also agreed that it shall vote in favor of resolutions submitted by the Board of directors to the 2015 and 2016 Shareholders’ Meetings, unless they relate to dilutive equity issues or unless the average share market price of Technicolor over a 20-day period goes below €5 and Fishman steps down from the Board at that time. Pursuant to this settlement, the two parties shall also put an end to all ongoing legal disputes between them.
Vector Capital’s Fishman added: “Vector continues to see great potential at Technicolor and we continue to support the Company and its management team. We support the implementation of the Drive 2020 strategic plan and we look forward to collaboratively working within the Board on its shareholder value creation aspects.”