UPDATE: Philips To Reduce Stake In TPV; Mitsui To Buy Up To 20%
January 29 2010 - 6:31AM
Dow Jones News
Dutch electronics company Royal Philips Electronics NV (PHG)
said Friday it agreed to sell a 9.5% stake in Hong Kong-listed TPV
Technology Ltd. (0903.HK) for EUR95 million to China Great Wall
Computer Shenzhen Co. Ltd. (000066.SZ), which would reduce its
holding to 2.99%.
In a separate transaction, Japanese conglomerate Mitsui &
Co. Ltd. (8031.TO) said it will spend up to Y28.0 billion to buy a
20% stake in TPV. Mitsui plans to buy up to 469 million shares at
HK$5.20 each, representing a 6.6% premium to TPV's Thursday closing
price of HK$4.88.
The 20% stake includes new shares to be issued by TPV.
Through the transaction, Philips will be able to get the cash it
needs to focus on its core consumer electronics business.
"The sale is expected to have a break-even impact on our
first-quarter results," the Amsterdam-based maker of television
sets, shavers, lighting and healthcare equipment said in a
statement.
For Mitsui, it will help the firm expand its television and
computer-screen business.
China Great Wall Computer Shenzhen is the largest shareholder in
TPV and a held 27% stake prior to the Philips transaction. Through
the deal, its shareholding in the company rises to 36.5%,
triggering a need to offer to buy out the remaining shares.
Mitsui said the company and China Great Wall aim to maintain
TPV's listing status on the Hong Kong and Singapore Stock Exchange
after a joint mandatory offer.
Shares of TPV were halted Thursday morning. The company said
earlier it plans to issue a statement later Friday.
Officials at China Great Wall Computer couldn't immediately be
reached for comment.
-By Lorraine Luk and Anna Marij van der Meulen, Dow Jones
Newswires; 852-2802-7002; lorraine.luk@dowjones.com (Kazuhiro
Shimamura in Tokyo also contributed to this article.)
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