TCL to use IPO to split off TV?

6 Jan 2004

Chinese mobile handset manufacturer TCL Corp has announced plans to raise around CNY2.5 billion (USD302 million) in a domestic initial public offering (IPO) scheduled for tomorrow on the Shenzen stock exchange. TCL has said that it will use the funds for new acquisitions, but analysts believe that the bulk of the proceeds could be used to purchase mobile assets from its Hong Kong-listed unit TCL International Holdings. The acquisition would then allow the 55%-owned TCL International Holdings to focus solely on manufacturing televisions, following its merger with Thomson of France last November.