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      TCL to buy part of Shenzhen Textile Holdings

      2014-04-09 08:20 Global Times Web Editor: qindexing
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      Chinese consumer electronics producer TCL Corp plans to buy a 26 percent to 29 percent stake in Shenzhen Textile Holdings Co Ltd, the Xinhua News Agency reported Tuesday.

      Shenzhen Textile said in a statement released on Tuesday that TCL was the only company which applied to purchase the shares and has paid the guarantee fee in full.

      Shenzhen Textile is engaged in the manufacture and sale of textile garments and polarizers.

      TCL said that it decided to take the stake because Shenzhen Textile has developed valuable brand, technology and operation experience in the polarizer industry, Xinhua reported.

      TCL hopes to integrate its liquid-crystal display panel unit with Shenzhen Textile's polarizer business, according to Xinhua.

      Shenzhen Textile made a net profit of 47.22 million yuan ($7.6 million) in 2013, up by 158.31 percent from 2012, when it made a loss of more than 80 million yuan, according to an earnings report the company filed to the Shenzhen Stock Exchange on March 29.

      The companies still need to carry out more negotiations and wait for approval from Chinese authorities before the deal can finally go through, Shenzhen Textile said.

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