A unit of consumer electronics maker Royal Philips Electronics NV said it will buy an additional 5-percent stake in Chinese TV and mobile phone maker TCL Corp., becoming the company's third-largest shareholder, TCL said.
Philips Electronics China BV will pay 204.5 million yuan (approx. U.S. $25.3 million) for 129.3 million TCL shares, bringing its total stake in the Chinese company to 7.46 percent, TCL said in a statement to the Shenzhen Stock Exchange. TCL said the deal still requires government approval.
The company forecast it expects to sell 22 million color TV sets this year compared to sales of about 17 million units in 2004. However, TCL reported a net loss of $85.5 million in the first-half of 2005, compared with a net profit a year earlier. It cited costs earlier in the year of integrating with its joint venture partners and a downturn in mobile phone sales.
Philips already holds a 2.5-percent stake in TCL, whose largest shareholder is the local government in Huizhou, Guangdong, where the company is based. (AP)
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