April 2 (Bloomberg) -- Royal Philips Electronics NV completed the transfer of its unprofitable television business into a joint venture with TPV Technology Ltd., offloading a business that weighed on earnings for years.
The business will be 70 percent owned by Hong Kong-based TPV and 30 percent by Philips, be called TP Vision, and will be headquartered in Amsterdam, according the companies. Maarten de Vries, who will lead the venture, aims to make TP Vision one of the “top three player in the markets we play in,” he said on a call with journalists today.
“The TV industry is changing, and we came to conclusion that we need to team up with a partner,” Philips Chief Executive Officer Frans van Houten said on the call. “The joint venture does not mean the end of Philips TVs, but a great future.”
Philips, based in Amsterdam, booked a 272 million-euro charge ($363 million) in the fourth quarter as part of the separation from the television business. Philips already moved its monitor business into a partnership with TPV, a collaboration that became profitable after two years, and De Vries said today he aims to repeat that success with the television partnership, declining to give a timeline.
Van Houten, who has been in charge of Philips for a year, said there have been “no material changes” to the deal results since the November announcement of the partnership.
Philips gained 6 cents, or 0.4 percent, to 15.26 euros as of 9:25 a.m. local time, valuing the company at 15.4 billion euros.
To contact the reporters on this story: Martijn van der Starre at firstname.lastname@example.org
To contact the editor responsible for this story: Mariajose Vera at email@example.com