PHILPS 200 million yuan holdings of TCL shares

During the reform, TCL group big dense appearance. Following 1 billion 690 million yuan stripped of non core business, HK $issue of new shares after the TCL communications, TCL group has won a cash holdings of $200 million PHILPS.

TCL group 28, December 25, 2005, the controlling shareholder of Huizhou Klc Holdings Ltd and PHILPS Electronics China company officially signed the share transfer agreement.

According to the agreement, Huizhou PHILPS holdings to transfer its holdings accounted for 5% of the total share capital of the country TCL group shares 129 million 316 thousand and 600 shares, the transfer price is based on the TCL's September 30, 2005 net assets per share of 1.58 yuan to 1.5816 yuan per share, totaling 204 million 530 thousand yuan in cash, by PHILPS to pay Huizhou holdings.

Previously, Huizhou TCL holdings holds 25.22% stake in the group, is the largest shareholder of the company, the actual control of the state-owned assets supervision and Administration Commission of Huizhou city; PHILPS holds 2.46% of TCL group, foreign legal person shares, is the fifth largest shareholder of the company.

The share transfer is completed, Huizhou TCL Holdings Group shares will be reduced to 522 million 966 thousand and 100 shares, the shareholding ratio fell to 20.22%, but is still the largest shareholder; PHILPS holdings of TCL group shares will increase to 192 million 994 thousand shares, the total capital ratio of 7.46% to the third largest shareholder.

At present, the TCL group is undergoing a split share structure reform, the circulation of shareholders to get 2.5 shares per 10 shares. Since the commitment of PHILPS and the transferee shares related to the consideration of the split share structure reform, so the actual cost of the transferee stake increased to 1.87 yuan per share.

TCL Group executives said, TCL group's new strategic adjustment has been kicked off, the future will be more focused on consumer electronics and related industries, and to TV, mobile phone, computer three as the core business, in order to win the initiative of 3C fusion era.

TCL group said, Huizhou holdings is still in negotiations to other strategic investors as well as to the company management personnel (including senior management) for further transfer of part of the shares of the company matters, but the transfer of the shares does not lead to changes in the controlling shareholder, Huizhou holdings will remain the largest shareholder position.