Technicolor to Spin Off VFX and Animation Businesses as a Publicly Traded Company

variety.com:

Todd Spangler NY Digital EditorTechnicolor announced plans to spin off Technicolor Creative Studios, housing its visual effects and animation businesses including MPC Film (formerly known as the Moving Picture Co.), through a share distribution to company shareholders.Paris-based Technicolor will remain listed on Euronext Paris.

Following the spinoff of Technicolor Creative Studios, the parent company will retain up to 35% ownership. Technicolor will have two main lines of business following the transaction: Connected Home, a provider of broadband and Android TV tech solutions; and DVD Services, which provides replication, packaging and supply chain solutions for packaged media and related products for across film, TV, games and music industries.

Along with the TCS spin, Technicolor expects to refinance its debt with the issuance of €300 million ($336 million) in mandatory convertible notes.

The refinancing and the spin-off are expected to be completed by the third quarter of 2022, subject shareholder and regulatory approvals.In addition, Paris-based Technicolor said it received a binding offer to sell its trademark licensing operations for about €100 million ($112 million) in cash.