Philips boost stake in TCL Corporation
Philips Electronics China, a unit of Royal Philips Electronics NV has announced plans to expand their presence in the ever-growing electronics market in China. The Chinese unit of the Europe’s largest consumer electronics maker would now be purchasing an additional 5 percent stake in Chinese television and mobile phone maker TCL Corp. This deal would make Philips the third-largest shareholder in the TCL Company.
Philips would be paying close to $25.3 million for these 129.3 million TCL shares. This deal would raise their stake in the company to 7.46 percent. This information was released to the Shenzhen Stock Exchange by TCL where their shares are traded in the stock market. However, the deal would require the approval from the government and regulatory authorities.
TCL is also a partner in the France’s Thomson SA and have been looking forward to international tie-ups to gain more market share in this industry. They are also interested in collaborating with Alcatel SA of France and Japan’s Toshiba Corp. as they expand their manufacturing bases and markets for their product range. The company has forecasted that they would be selling close to 22 million color television sets this year.
This would be an improvement over the 17 million units they sold last year. However, the company ended up making loses in the first half of 2005 and blamed it on the high costs of integrating with its joint venture partners and a downturn in mobile phone sales.