Philips completes spin-off of TV unit to TPV Technology
Dutch electronics and medical equipment giant Philips said Monday it had completed the spin-off of its television division to Hong Kong-based LCD screen and computer maker TPV Technology.
Philips retains a 30-percent stake while TPV Technology holds 70 percent in the joint venture called TP Vision, which will design, manufacture and sell Philips brand televisions throughout most of the world.
"TP Vision will be a strong player in the global TV market and will ensure the continuity of the Philips TV brand in the markets," Philips chief executive officer Frans van Houten said in a statement.
The 3,000 employees and facilities in the Philips TV division will be transfered to TP Vision, which will be headquartered in the Netherlands.
"This partnership will enhance Philips' brand position in the TV space and bring sustainable returns to both shareholders," TPV chairman and chief executive officer Jason Hsuan was quoted as saying.
TP Vision won't be able to sell Philips televisions in such major countries such as mainland China, India, or the United States as the rights to use the Philips brand has been sold to other manufacturers.
Philips' television unit posted a loss of 54 million euros in the third quarter last year amid intense competition from Asian manufacturers.
When announcing the spin-off deal in November 2011, Philips said it would take a 270 million euros ($360 million) charge in its fourth quarter earnings in addition to about 110 million euros charged in previous quarters.
The company said this included separation costs of about 100 million euros.
Philips, which employs 120,000 people, was centred for decades on making televisions and electrical devices for the home.
About 10 years ago it began developing a medical equipment division, providing such material as scanners and lighting systems.