TPV expands TV business with Philips sales deal for mainland

TPV Technology, the world's largest contract manufacturer of computer monitors, is set to expand its television business with a new initiative to sell and distribute Philips colour TVs on the mainland.

Kowloon-based TPV and subsidiary AOC Holdings yesterday secured a five-year, exclusive licensing deal with Royal Philips Electronics, according to chairman and chief executive Jason Hsuan in a filing with the Hong Kong stock exchange.

As part of that agreement, AOC will acquire Philips' Shanghai-based TV products marketing and parts operation for Euro1.23 million (HK$12.88 million). The deal is expected to close before December 31.

This marks the latest strategic transaction between Philips and TPV, which completed its US$358 million purchase of the Dutch firm's computer monitor business and part of its flat-screen TV operation in September 2005.

Hsuan said last month TPV would 'continue to bolster its business and refine its supply chain by strengthening its existing strategic relationships and building new ones'.

Philips, which owns a 2.69 per cent stake and holds convertible bonds representing 13.36 per cent of the total issued share capital in Hong Kong-listed TPV, has outsourced all development and production of its flat-screen colour TVs to some so-called original design manufacturers, including TPV.