China: TCL, Letv strategic cooperation
December 18, 2015
Letv has subscribed to an approximate 20 per cent stake in TCL Multimedia through Letv Zhixin’s newly-established wholly-owned subsidiary in Hong Kong. Upon completion of the deal, Letv will become the second largest shareholder of TCL Multimedia.
Under the terms of the share subscription agreement, Letv, through the Hong Kong subsidiary, invested HK$2.268 billion ($293 million) to subscribe to 349 million new shares of TCL Multimedia at HK$6.5 per share. Once the deal closes, Letv will nominate two directors at TCL Multimedia.
Hong Kong-listed TCL Multimedia, a major component of TCL Corporation and one of China’s leading TV makers and distributors, sells over 1 million TV sets monthly on average. Letv Zhixin, a subsidiary of Letv, is primarily engaged in the sale of smart terminals, including Internet super TVs and set-top boxes.