CARLTON SELL TECHNICOLOR FOR £1.43 BILLION

CARLTON Communications Plc have confirmed that they have reached an agreement in principle with Thomson Multimedia on the sale of Technicolor for £1.43 billion.
Under the terms of the agreement Carlton would receive cash with a present value of £93 billion of which £415 million would be payable over four years, and an immediate economic interest in 15.5 shares in Thomson, which would be released after one year. The closing price of Thomson shares on Friday December 8 was Euro 52, valuing the shares at £495 million. Carlton would own approximately 5.5 per cent of Thomson’s issued share capital and would be represented on their board.
Carlton and Thomson have also agreed, in principle, a strategic alliance covering digital and interactive television. Carlton owns 50 per cent of ONdigital. Thomson is a leading manufacturer of digital set top boxes and has businesses in digital technology and interactive television. As part of the proposed alliance, Carlton would invest approximately $15 million in TAK, Thomson’s European interactive television joint venture with Microsoft.
Under the agreement, Carlton would retain Screenvision, the leading US cinema advertising business.
The agreement reached on the structure of the transaction remains subject to contractual obligations, as well as board, shareholder and regulatory approvals for both companies.
Last week, Thomson Multimedia announced that it had reached a preliminary agreement for the purchase of five businesses in the Philips Professional Broadcast group.
(CMcL)