TCL Corp, one of China's largest electric appliance-makers, is planning to spin off its mobile handset manufacturing arm in a Hong Kong initial public offering (IPO), according to an announcement issued to the Shenzhen, China stock exchange.
The Guangdong, China-based group, which listed in Shenzhen in January 2004 through a share-swap with TCL Communication Equipment, a subsidiary, said the spin-off was awaiting approval by the board of directors and regulators in both China and Hong Kong.
Guo Aiping, vice general manager of TCL Mobile Communication (TCL Mobile), told the Guangzhou, China-based Information Times newspaper that the listing was planned for the middle of the year.
TCL Mobile, founded in 1999, is the mainland's second-largest mobile handset-maker and one of the most profitable businesses in group. TCL Corp owns 36 per cent of it while TCL International, a subsidiary listed in Hong Kong since 1999, holds a 40.8-percent stake. (Financial Times (of China) )
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