(Yicai Global) May 2 -- Chinese electronics company TCL Corp. [SHE:000100] sold a 37 percent stake in its electronic component subsidiary, TCL Display Technology Holdings [HKG:0334].
The sale was to its unlisted subsidiary Shenzhen China Star Optoelectronics Technology (CSOT) for USD126 million.
CSOT is a glass panel supplier, and TCL Display Technology specializes in display module production. The deal will facilitate in-depth cooperation between the pair in manufacturing, supply chain, product and client structuring and after-sales services, bonding them together in market development in China and abroad, TCL Corp. said today.
CSOT will become the controlling shareholder of TCL Display Technology after the reorganization, with TCL Corp. remaining the controlling shareholder.
The Guangdong-based company has suspended share trading since April 21 to "plan important matters." The merger of the two subsidiaries was not the reason for the trading suspension, meaning that it is just a small part of the reorganization the TCL group is planning, Liao Sai, its vice president and board secretary, recently told Yicai Global.