2021 was a year of significant achievement in financial and operational terms, positioning Technicolor on a growth trajectory for the years to come. The efforts of its dedicated and talented teams have enabled the company to continue delivering the best products and services to their clients, allowing them to achieve their 2021 guidance.
The company has announced the decision to split the group into two separate listed companies – Technicolor Creative Studios on one side, and Technicolor SA made up of Connected Home and HES on the other. The company believes that this operation is a unique opportunity to build autonomous businesses that can take control of their own destiny and grow at their own pace, on their own terms, with their own funding and in their own markets.
The project, aiming to enhance the full potential of the Technicolor businesses and create value, will be implemented by Q3 2022.
Technicolor intends to list and spin-off 65% of Technicolor Creative Studios through a distribution-in-kind to Technicolor shareholders, while Technicolor will remain listed on Euronext Paris and post-Spin Off will retain up to 35% ownership of TCS
It will evolve into two industry-leading, independent listed companies, each with the ability to pursue its own strategic agenda and unleash value potential.
Richard Moat, CEO of Technicolor, said: “2021 was a year of great success despite the volatile business environment, and we have yet again proved our ability to react quickly and efficiently to unexpected challenges. The efforts of our dedicated teams have enabled us to achieve our 2021 guidance, and I want to thank everyone around the world who contributed to this excellent result. The outlook is strong, and today I am pleased to confirm our 2022 guidance.
“The transformation of the Group carried out over the past two years has resulted in us having three profitable businesses which are global leaders in their respective markets. In addition to executing our transformation program, the board of directors and management team have continuously evaluated strategic options to unleash the value potential of our divisions. After a comprehensive review, we determined that pursuing the partial spin-off of TCS from the Group along with the full refinancing of the existing debt will be the solution that best aligns strategy, value creation and financial objectives for all of Technicolor’s stakeholders. We are convinced that this operation is a unique opportunity to ensure both TCS and Technicolor Ex-TCS have the adequate capital structure to support their developments, long-term ambitions and organic growth. The execution of these operations will allow both companies to pursue their own strategic agendas, be more agile and ultimately thrive as independent businesses.”
