TCL Multimedia Restructures AV Business
Hong Kong Exchanges and Clearing, 12/10/12
Chinese television and audiovisual products manufacturer TCL Multimedia (1070.HK) has announced that Tonly Electronics, a wholly owned subsidiary incorporated in the British Virgin Islands as a holding company of TCL Multimedia's audio-visual products business, has entered into a subscription agreement with TCL Multimedia, Run Fu and Star Force (both British Virgin Island incorporated companies). Under the agreement, Tonly Electronics will issue and allot to TCL Multimedia, Run Fu and Star Force 34,640,000, 11,426,400 and 9,733,600 ordinary shares, respectively, at respective consideration of HKD 90,756,800, HKD 29,937,168 and HKD 25,502,032. Immediately prior to the completion of the subscription agreement, Tonly Electronics will have 50 mln Tonly Electronics shares which are fully owned by TCL Multimedia. Thus, on completion of the subscription agreement, Tonly Electronics will be held by TCL Multimedia, Run Fu and Star Force as to 84,640,000, 11,426,400 and 9,733,600 Tonly Electronics shares, representing 80%, 10.8% and 9.2% respectively of the enlarged issued share capital of Tonly Electronics.
The main purpose of the subscription agreement is to motivate the contribution of Run Fu and Star Force and to provide them a direct economic interest in attaining the long-term business objectives of TCL Multimedia.
Recently, TCL Multimedia is undergoing a restructuring of its AV Business, under which Tonly Electronics, a newly established subsidiary of TCL Multimedia, will be a holding company of the AV Business after the completion of such restructuring. Run Fu and Star Force are two newly set up companies established for the purpose of the subscription contemplated under the subscription agreement. Ultimately, the participants will indirectly hold the shares in Run Fu and Star Force through respectively two and four limited partnerships established in the PRC and the partners of all those limited partnerships are the participants.
Keywords: corporate restructuring Run Fu Star Force television TCL Multimedia 1070.HK Tonly
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