Dutch electronics and medical equipment giant Philips said yesterday it had completed the spin-off of its television division to Hong Kong-based LCD screen and computer maker TPV Technology (冠捷).
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 TVs 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 market,” Philips chief executive officer Frans van Houten said in a statement.
The 3,000 employees and facilities in the Philips TV division will be transferred to TP Vision, which will be headquartered in the Netherlands.
TP Vision will not be able to sell Philips TVs in China, India and the US because the rights to the Philips brand have been sold to other manufacturers.
Philips’ TV unit posted a loss of 54 million euros (US$72 million) in the third quarter of last year amid intense competition from Asian manufacturers.
When announcing the spin-off deal in November last year, Philips said it would take a 270 million euro charge in its fourth quarter earnings in addition to about 110 million euros charged in previous quarters.
Philips, which employs 120,000 people, focused for decades on making televisions and household electrical devices.
About 10 years ago it began developing a medical equipment division, providing such devices as scanners and lighting systems.