China’s Leading Internet Technology LeTV Buys 20% Of TCL Multimedia At USD 293Million
Letv, the China-based internet technology conglomerate, made a significant business announcement over the weekend regarding the successful conclusion of an agreement to buy 20% stake in TCL, a state-controlled China-listed firm selling electronic products. An announcement to this effect was released at the Shenzhen Stock Exchange on Saturday last, declaring the signing of a Share Subscription Agreement between Tianjin-based LeTV Zhixin, a subsidiary of LeTV, China’s leading video service provider and TCL’s subsidiary HK-listed TCL Multimedia.
According to the agreement, LeTV bought 348,850,000 shares of TCL Multimedia at the price of HKD 6.5 per share, at an investment of around USD 293 million (HKD 2,267,525,000) made by LeTV Zhixin’s wholly-owned subsidiary LeTV Zhixin Investment (HK) Ltd. LeTV Zhixin, is responsible for the hardware and software for all of LeTV’s television operations including the manufacture of the SuperTVs and set-top boxes.
Letv will nominate two board directors and according to the announcement, TCL and LeTV will share resources, consolidate their user groups and jointly develop new products. Firstly, they will integrate their resources including supply chains, online and offline sales, and after-sales service. They will jointly focus on intelligent terminal hardware development, catering to the needs of high-end users and overseas users. They will also work towards enhancing profits by combining their accumulated users and harnessing their respective advantages in content and platform.
Upholding its vision of groundbreaking technology, all-inclusive ecosystem and disruptive pricing strategy, Letv has been progressing steadily in expanding its businesses across the globe. There are several indications that Letv’s entry into India is imminent and industry is rife with rumours about its Superphones undergoing extensive rigorous testing in various labs here. There are also unconfirmed reports about the company’s plan to launch Le Super TVs in India , which have best-in-class hardware and exceptional product design with the world’s leading TV Operating System (OS) EUI.
Established in 2004 as a video-streaming company, Letv has become a full-fledged listed conglomerate with a wide range of businesses including TV, mobile phone, electric vehicles, sport, music, movies and TV shows, wine distribution and so on. With the commitment to build a unique and complete ecosystem and to provide first-class experience for its users around the world, the company will surely wow its audiences in India.