PARIS - Technicolorsaid U.S. bank JPMorgan Chaseplans to take astake of up to 29.96 percent in the French digital video specialistto help it cut debt and push through its turnaround plan. The transaction will take place through a two-step capitalincrease, the first tranche reserved for JPMorgan and the secondalso open to existing shareholders. An investment vehicle jointly owned by JPMorgan's privateequity investment arm and by the bank itself has committed to buyup to three-quarters of the second issue, Technicolor said. The French company expects to raise between 147 million and 158million euros ($208 million) from the capital hike and will use 80percent of net proceeds to pay down debt, it said in a statement onThursday. "The capital increase we are planning will provide the companywith a stronger financial structure and a stable shareholder baseto implement its growth strategy," Technicolor Chief ExecutiveFrederic Rosesaid. Technicolor suffers from a high cost structure and net debt,which reached 1.13 billion euros last year, while its loss-makingset-top box business has been hit by telecom operators' moves toshift production to cheaper countries such as China and Tunisia andthe impact of the euro zone debt crisis on prices. After cutting 6,000 jobs last year, Technicolor has said itaims to reduce debt by 200-300 million euros and generate 400million in free cash flow over 2012-15. Technicolor plans initially to issue 72.28 million shares at1.60 euros a share in a reserved capital increase for JPMorgan. Itwill subsequently offer 26.91 million shares to existingshareholders at 1.56 euros each. The stock, which was suspended on Wednesday, last traded at1.599 euros. JPMorgan, which already holds 1 percent of Technicolor, willown between 25 percent and 29.96 percent of the group following therights issue. It will also have two seats on the board of theFrench company. The offer is expected to run from June 27 until July 3. Last month, CEO Rose told Reuters Technicolorhoped to find apartner for the set-top box business this year and was in talkswith several parties. ($1 = 0.7603 euros) (Reporting by James Regan; Editing by Nina Sovich and ChristianPlumb). The e-commerce company in China offers quality products such as Led Miners Cap Lamp Manufacturer , China LED Lights For Bicycles, and more. For more , please visit Led Miners Cap Lamp today!
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