Tianjin’s government is in talks to sell two listed technology firms to Chinese consumer electronics giant TCL

The government of Tianjin is in early talks to sell stakes in two of its listed technology firms to Chinese consumer electronics giant TCL, according to people familiar with the matter.

The discussions involved holdings in chip devices maker Tianjin Zhonghuan Semiconductor, and Tianjin Printronics Circuit, a printed circuit boards producer, the people said.

Tianjin’s government and TCL are still exploring options including direct stake sales or having the electronics company acquire control in the major shareholder of the two listed firms, said the people, who asked not to be identified as the discussions are private.

TCL has been shifting its focus to technology and hence has been studying the industry including the relevant companies, it said in an exchange filing on Sunday. The firm hasn’t reached any concrete agreement and will make an announcement on any progress, it said.

Tianjin Printronics shares rose as much as 4.1 per cent on Monday before falling 1 per cent as of 10:18am in Shenzhen. Tianjin Zhonghuan climbed as much as 5 per cent, giving it a market value of 41.3 billion yuan (US$6 billion).