TPV Technology Ltd (冠捷), the world's second-biggest personal computer monitor maker, expects sales of Philips Electronics NV to reach US$5.8 billion by 2009 after its purchase of the Dutch company's monitor unit.
TPV expects sales to Philips Electronics to reach US$556 million this year, US$2.9 billion next year, US$3.6 billion in 2007 and US$4.5 billion in 2008, the company said today in a statement to the Hong Kong Stock Exchange.
TPV, based in Hong Kong, signed a formal agreement yesterday to buy the Philips subsidiary. Completion of the purchase will make TPV the world's biggest maker of PC monitors and boost its market share to a third from 19.2 percent, the company said. "The acquisition will help TPV diversify quickly into the growing flat-screen TV market," it said. "Demand for flat- screen TVs is expected to be a major driver of growth."
Under the deal, originally agreed in December, Philips gets a 15 percent TPV stake valued at US$148 million, plus US$210 million of bonds convertible into TPV shares. Philips will boost its stake to 30 percent if it exercises the bonds after three years.
Philips will focus on marketing and sales of its branded monitor and flat-screen TV products, and TPV will take over output facilities in Suzhou and Dongguan.
TPV will supply the Philips and "Magnovox" branded monitor business and third-party customers of the Amsterdam-based company.
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