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Philips announces joint venture with TPV
Philips Electronics today announced an agreement to transfer its television business into a joint venture with TPV Technology Limited. As part of this transaction, the Philips Television innovation and manufacturing sites, commercial organizations, headquarters and employee base of 3,500 will be transferred into the joint venture.
The new company will be 70% owned by TPV and 30% by Philips. The initial term sheet was announced earlier this year, on April 18.
Closing of the deal, which is expected at the end of the first quarter of 2012, will take place after necessary merger clearance, governmental and TPV shareholder approvals are obtained.
As a result of this transaction, Philips will report a pre-tax negative deal result in the fourth quarter of approximately EUR 270 million in addition to approximately EUR 110 million that was already charged in previous quarters. This result includes separation costs of approximately EUR 100 million.
“I am pleased that we have now signed the Television joint venture agreement with TPV. This agreement is important for both Philips and TPV and provides clarity to our consumers, trade partners and employees,” said Philips Chief Executive Officer Frans van Houten.
“This partnership is an important step in realizing our growth ambitions in the TV space,” said TPV Chairman and Chief Executive Officer Jason Hsuan. “The joint venture is an extension of our ongoing relationship with Philips for many years and we are confident that together we can become a major player in Television globally.”
The joint venture will be responsible for the design, manufacturing, distribution, marketing and sales of Philips’ Television worldwide, with the exception of mainland China, India, United States, Canada, Mexico and certain countries in South America.
