Philips transfers TV business to a three way partnership with TPV Technology, TPV takes the controlling stake

It took almost exactly a year, but Philips is finally freed from its pesky, money-losing TV problem. As planned, the corporate transferred its television business right into a three way partnership with Hong Kong-based TPV Technology called TP Vision -- an arrangement that endows TPV with a controlling 70 percent stake. (Philips will still receive royalties on top of whatever it earns through this venture, and plans to sell Philips-branded sets within the US through a separate partnership with Funai.) Though the deal was first detailed a year ago, Philips only announced today that the transaction had closed. Now that it has, the newly formed company will produce Philips-branded TVs in a bid to make it one of several "top three players," in line with TP Vision chief Maarten de Vries. As you'd expect, all the 3,300 employees that in the past fell under Philips' television division will now be within the employ of TP Vision, and Philips' various manufacturing sites was transferred over too. All of that and a hefty dose of rah-rah within the full PR below.

Show full PR text

Philips and TPV announce start of Television three way partnership named TP Vision
- Three way partnership to leverage the strengths of Philips and TPV in global Television market
- Ensures the way forward for the Philips brand in Television

Amsterdam, the Netherlands – Royal Philips Electronics (NYSE:PHG, AEX:PHI) today announced that the transaction to create a Television three way partnership with TPV Technology Limited (0903.HK) was completed. The three way partnership would be called TP Vision and may be 70% owned by TPV and 30% by Philips. TP Vision will develop, manufacture and market Philips branded TV sets.

The completion of the agreement comes after the mandatory merger clearance, governmental and TPV shareholder approvals were obtained. TP Vision, with headquarters in Amsterdam, can be led by Mr. Maarten de Vries. TP Vision will combine the design expertise and innovative Philips TV heritage with the producing scale, and operational excellence, of TPV.

"TP Vision may be a sturdy player within the global TV market and could make sure the continuity of the Philips TV brand within the markets," said Philips Chief Executive Officer Frans van Houten. "TP Vision will leverage the strength of the Philips brand, innovation power and trade relationships, with the extra scale and manufacturing strengths of TPV. The television partnership with TPV enables Philips to concentrate on expanding market leadership positions across our Healthcare, Consumer Lifestyle and Lighting sectors."

"We're glad to have Philips as a partner on this Television three way partnership," said TPV Chairman and Chief Executive Officer Jason Hsuan. "This partnership will enhance Philips' brand position inside the TV space and produce sustainable returns to both shareholders. Philips and TPV had been partners for decades and we're confident that together we will be able to become an immense player in Television globally."

"TP Vision is here to stick and grow profitably,'' said TP Vision Chief Executive Officer Maarten de Vries. "TP Vision will continue to bring the high level of innovation consumers expect from a Philips TV. Our recently launched 2012 series have everything to benefit from the world of digital content delivered via broadcasting and the internet. We believe in creating products that touch the human senses and are within sight of all consumers within the markets we operate in."

TP Vision would be liable for the design, manufacturing, distribution, marketing and sales of Philips' Television worldwide, apart from mainland China, India, Country, Canada, Mexico and likely countries in South America. As portion of the transaction, the Philips Television innovation and manufacturing sites, commercial organizations, headquarters and employee base of nearly 3,300 will transfer to TP Vision.

The main terms and prerequisites of the transaction are per the announcement made on November 1, 2011.

Philips Television has operated as a standalone business within Philips Consumer Lifestyle since January 1, 2012.

From WhatNewsToday.net

Posted in: