TPV Technology looks likely to gain more than US$1 billion of additional revenue this year from buying out its associate company Oriental Top Victory Electronics (OTPV) and completing its acquisition of monitor and flat-screen television businesses from Royal Philips Electronics.
Referring to TPV's US$358 million acquisition of all of Philips' monitor business and part of its flat-screen TV business, TPV chairman Jason Hsuan Chian Shen said: 'The deal should be completed in July. After that, it will bring US$2 billion of annualised revenue.'
Also in July, TPV will buy out all of its associate company OTPV. Mr Hsuan said TPV now had a 41.7 per cent stake while the rest was held by TPV's parent company BOE Technology. After that, TPV would consolidate the results of OTPV, whose annual revenue was about US$500 million last year.
To acquire Beijing-based BOE's stake in OTPV, TPV will issue new shares, said TPV senior vice-president Mondy Houng Yute. OTPV is the second-largest producer of LCD, CRT and PDP displays in northern China.
Last year, TPV's turnover soared 75.1 per cent to US$3.73 billion, while net profit rose 55.7 per cent to US$108.33 million, above market expectations of US$107.8 million. TPV shipped 9.6 million units of TFT-LCD monitors last year, accounting for 71.2 per cent of its turnover.
'Last year was a monumental year for TPV as we topped the high-growth TFT-LCD monitor market,' Mr Hsuan said.