TCL Multimedia Technology Holdings, one of the mainland's biggest television manufacturers, has landed a deal to buy the liquid crystal display module business of TCL Optoelectronics Technology (Huizhou) from its parent firm, TCL Corp.
Shenzhen-based TCL Multimedia has agreed to a purchase price of 246.497 million new shares valued at 655.572 million yuan (HK$788.8 million), a deal which is subject to independent shareholders' approval.
In a filing with the Hong Kong stock exchange, TCL Multimedia described the transaction as a means to further integrate its production process and provide a new revenue-generating operation.
Li Dongsheng, the chairman of TCL Multimedia, said the proposed acquisition 'will further increase [the company's] competitive advantage in the LCD TV market'.
According to market research firm DisplaySearch, TCL Multimedia's total television market share ranked seventh globally and No 2 on the mainland last year. The company was also ranked No 3 in domestic LCD television sales, with a 13.6 per cent market share.
The acquisition target, TCL Optoelectronics, manufactures and sells the so-called LCD module, which is the component required for the assembly of connectors, integrated circuits, printed circuitboards, backlight and mechanical parts that are used in the manufacture of LCD televisions.