4 Nov 2009 11:07

TCL Communication to raise $46.19 for handset ODM

Beijing. November 4. INTERFAX-CHINA - TCL Corp. announced on Nov. 4 that its Hong Kong-listed subsidiary, TCL Communication Technology Holding Ltd. (TCL Communication), plans to raise HKD 358 million ($46.19 million) through stock allotment to invest in its handset manufacturing business.

According to the announcement, TCL Communication will use the proceeds to develop its original design manufacture (ODM) business, as well as to upgrade production equipment and replenish its liquidity.

Another TCL Corp. subsidiary, TCL Industries Holdings (HK) Ltd. (TCL Industries), will purchase at least 166 million new shares in TCL Communication, the announcement said.

TCL Communication's third quarter financial results showed that its sales of handsets and handset components hit 4.24 million units, generating HKD 13.89 million ($1.79 million) in revenue. This figure is an increase of 30 percent year-on-year and 64 percent quarter-on-quarter.