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The deal was confirmed in 2004 and the mid-2005 saw TPV Technology taking over the business for an estimate value of $350 million.
According to Philips the personal computer monitor business was sold as it would allow the company to realize economies of scale when it comes to manufacturing. In addition, Philips would also be able to strengthen its research and development in flat screens, and be able to extend its market reach for these products.
For those who do not know anything about TPV Technology, here is a little bit of background information. TPV is headquartered in Taiwan. However, the company’s main operations are based in China. 25 percent stake in the company is owned by BOE Technology Group Company Limited, which is a Beijing-based company. TPV manufactures a wide range of TFT-LCD and CRT personal computer monitors. After acquiring Philips’ monitor business, TPV will be manufacturing PC monitors as well as low end flat screen televisions for Philips. This business deal as ended up making TPV the world’s largest monitor maker as it produces 35 million units each year.
To finance the purchase of Philips monitor business, TPV issued shares and convertible bonds. Philips owns 15 percent of TPV as a result of convertible bonds and if the bonds are converted, Philips will end owning nearly 30 percent of TPV Technology.
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