2nd UPDATE: Philips To Cut TPV Stake; Mitsui To Buy Up To 20%

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 of HK$5.20 a share.

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.)

Mitsui (NASDAQ:MITSY)
Historical Stock Chart
From May 2024 to Jun 2024