TCL Multimedia has reached a subscription agreement with Letv's subsidiary Letv Zhixin, under which Letv will invest HKD2.267 billion, which is about CNY1.875 billion, to subscribe to an approximate 20% stake in TCL Multimedia via Letv Zhixin's newly-established wholly-owned subsidiary in Hong Kong.
With this deal, Letv will gain 348.85 million TCL Multimedia's new shares at the price of HKD6.5 per share.
On the completion of the deal, Letv Zhixin will become the second largest shareholder of TCL Multimedia and will gain two director positions at TCL Multimedia's board in Hong Kong. The largest shareholder of TCL Multimedia is TCL Industries Holdings (HK) Limited, which owns a 50.45% stake in TCL Multimedia.
TCL Multimedia is a Hong Kong-listed company and a major component of TCL Corporation. Its core products are color TVs. TCL Corporation is formed by several companies, including TCL Multimedia and TCL Communication.
Letv Zhixin Electronic Technology (Tianjin) Co., Ltd is a subsidiary of Letv, which is listed on China's growth enterprise market. Its major businesses cover TV and TV box.