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TCL Corp unit prepares to go private before listing of group

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Move necessary as rules limit firms to just one company on mainland bourse

Leading mainland consumer electronics maker TCL Corp plans to privatise its Shenzhen-listed subsidiary in preparation for a flotation of the entire group.

The privatisation is necessary for TCL Corp to comply with domestic stock market rules, which limit a company's mainland-listed units to one.

TCL Corp president Tomson Li Dongsheng said the merger with Shenzhen-listed A share TCL Communication Equipment would enable the group to fully tap the capital market for its diversified consumer electronic manufacturing business.

'The merger will help the group achieve economies of scale and synergy [with its subsidiary], enhancing its international competitive strength,' Mr Li said.

The group's products include television sets, mobile phones, washing machines, refrigerators, air-conditioners, personal computers, audio-visual equipment and components.

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