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TCL Multimedia will complete the acquisition of TCL Optoelectronics Technology (Huizhou) Co., Ltd.

(13 January 2012, Hong Kong) – TCL Multimedia Technology Holdings Limited (“TCL Multimedia” or “the Group”, HKSE stock code: 01070) is pleased to announce that all conditions precedent under the acquisition of TCL Optoelectronics Technology (Huizhou) Co., Ltd. (“TOT”) have been satisfied and fulfilled. The Group has obtained approval from The Stock Exchange of Hong Kong Limited for the listing of, and permission to deal in, the Consideration Shares (i.e. 246,497,191 ordinary shares of the Group). The closing of the acquisition will take place on 18 January 2012.
TCL Multimedia will issue and allot 246,497,191 new shares to its parent company TCL Corporation at an issue price of HK$3.20 per share on 18 January 2012. The issued price represents a premium of 9.22% over the average closing price of HK$2.93 for the last five trading days as at 27 June 2011, the date when the proposal for the acquisition was announced, and a premium of 20.30% over the closing price of HK$2.66 for today. Upon the completion of the acquisition, TCL Corporation will increase its direct and indirect stake from 53.12% to 61.88% of the enlarged share capital of TCL Multimedia, demonstrating TCL Corporation’s confidence in TCL Multimedia’s future development.
TCL Multimedia strives to be proactive in implementing its long-term development strategy, with an emphasis on “Vertical Integration, Innovation and Internationalization”. The acquisition of TOT will allow the Group to further integrate its production process and achieve cost synergy by enhancing its vertically integrated production process and manufacturing its own key components. It will also rationalize its resource allocation and enhance production in order to further increase the efficiency of its vertical integration strategy through its strategic cooperation with the 8.5-generation LCD panel production plant operated by Shenzhen Huaxing Photoelectrics Technology Company Limited (“Shenzhen Huaxing Photoelectrics”), in which TCL Corporation has made an investment. In addition, the acquisition of TOT will allow the Group to achieve new revenue contribution while also helping to ensure its supply of components, as well as to better accommodate potential variations in the cost of components in the future.
TOT was established by TCL Corporation in China in December 2007. TOT’s headquarters are located in Huizhou, Guangdong Province, China. It is principally engaged in the manufacturing, sale and maintenance of advanced display facilities and components, and is the first large screen LCD TV module plant established by a domestic Chinese enterprise. Currently, TOT is the Group’s key LCD module (including panels) supplier, accounting for approximately 30% of the Group’s total procurement volume in 2010. As one of the critical components in LCD TV production, LCD modules account for 70% of the total cost of LCD TVs. The total designed capability of TOT amounts to 8 million units. TOT has invested in the construction of six LCD module production lines with an annual production capacity of up to 6 million units.
Mr. Zhao Zhongyao, Chief Executive Officer of TCL Multimedia said, "Upon the completion of acquisition of TOT, together with Shenzhen Huaxing Photoelectrics’ 8.5 generation LCD panel production plant, TCL will become the first TV enterprise in China to integrate the industry chain of LCD TV production, which will further increase the Group’s competitive advantage in the TV industry. Looking forward, the Group will continue to accelerate its industry upgrades, as well as realize its development strategy of ’Vertical Integration, Innovation and Internationalization’ to achieve a greater cost synergy effect.”