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TPV and Philips confirm LCD TV joint venture

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TPV Technology, the world's largest contract producer of computer monitors, expects to consolidate its position as a global leader in liquid crystal display (LCD) televisions after acquiring the loss-making TV business of Royal Philips Electronics.

Dutch electronics giant Philips agreed to transfer its TV business into a joint venture with TPV, which will have a controlling 70 per cent stake. The deal's initial term sheet was executed by the two companies on April 18 this year.

Shares of Hong Kong-based TPV rose 2.69 per cent to close at HK$2.29 yesterday after earlier surging as high as 12 per cent. Trading in the shares resumed after being suspended on Wednesday last week, pending the company's confirmation of the deal, which Philips announced ahead of its partner on November 1.

In a filing with the Hong Kong stock exchange yesterday, TPV chairman and chief executive Jason Hsuan said: 'With Philips' brand, innovation and development capabilities, the group will be better placed to compete with leading Japanese and Korean brands.'

Hsuan said the acquisition would deliver 'a well-established sales and distribution network without significant set-up costs [for TPV]'.

The joint venture will be responsible for the design, manufacturing, distribution, marketing and sales of Philips' TV products worldwide, with the exception of the mainland, India, the United States, Canada, Mexico and certain countries in South America. The Philips TV innovation and manufacturing sites, commercial organisations, headquarters and 3,500 employees will be transferred into the venture.

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