China Great Wall Computer Shenzhen Co Ltd plans to pay HK$1.14
billion to acquire 10.27 percent of Taiwan's TPV Technology Ltd,
the world's largest computer monitor maker, the company said in a
statement to the Shenzhen Stock Exchange yesterday.
Great Wall Computer will buy the shares from Beijing-based BOE
Technology Group Co, a maker of PC monitor components, for HK$5.7
per share.
After the deal, Great Wall will become the monitor maker's
second-largest shareholder after Philips Electronics Hong Kong
Limited, which holds 13.51 percent. BOE will still hold 1.25
percent of TPV.
Great Wall, a manufacturer of computers and screens, is looking
to increase its market share and speed up expansion into overseas
markets, the company said in the statement.
Great Wall's monitor business contributes a growing share of the
company's revenue. The company, which is losing market share in
China's competitive computer market, sold more than 2 million
computer monitors in 2006.
Listed in Singapore, TPV is now the world's largest computer
screen maker by unit sales and supplies major computer
manufacturers such as Dell Inc and Sony Corp. In 2006, TPV sold 43
million computer screens and LCD TVs, raking in $7.18 billion in
total sales.
The deal still needs approval from Great Wall's shareholders and
regulatory authorities, the company said.
"Great Wall may further acquire stakes in TPV and integrate the
manufacturing and logistics operations of the two companies," said
Gao Hao, analyst from Shanghai-based Shenyin Wanguo Securities, in
a research note.
Shanghai-listed BOE Technology said in a statement the deal
would increase its net profit significantly this year. The company,
China's biggest maker of liquid crystal display panels, is now
struggling to make a turnaround after chalking up a loss for two
consecutive years.
BOE bought 26.23 percent of TPV for HK$1.05 billion last August
and then sold 10.3 percent to Philips this January. The company
said a few days later that it would sell its stake in the computer
screen maker.
BOE has been struggling amid a worldwide slump in the
flat-screen sector as prices of LCD TVs dropped 25 percent in the
domestic market in the second half of last year, analysts said.
(China Daily May 16, 2007)