Royal Philips Electronics NV will provide more than 385 million euros ($669 million) in financial backing to secure a television joint venture with TPV Technology after protracted negotiations to offload the unprofitable unit, reported Bloomberg.
Philips will book a pretax charge of about 270 million euros in the fourth quarter following the transaction, the Amsterdam-based company said today in an e-mailed statement. The new company will be 70% owned by TPV and 30% by Philips. The deal is expected to close in the first quarter of 2012.
Philips is shrinking a consumer-electronics business that’s struggled against rising competition and lower costs from Asian rivals. The television business had a loss of 54 million euros ($94 million) in the third quarter.
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