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Great Wall Computer to Buy Stake in TPV
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China Great Wall Computer Shenzhen Co Ltd plans to pay HK$1.14 billion to acquire 10.27 percent of Taiwan's TPV Technology Ltd, the world's largest computer monitor maker, the company said in a statement to the Shenzhen Stock Exchange yesterday.

Great Wall Computer will buy the shares from Beijing-based BOE Technology Group Co, a maker of PC monitor components, for HK$5.7 per share.

After the deal, Great Wall will become the monitor maker's second-largest shareholder after Philips Electronics Hong Kong Limited, which holds 13.51 percent. BOE will still hold 1.25 percent of TPV.

Great Wall, a manufacturer of computers and screens, is looking to increase its market share and speed up expansion into overseas markets, the company said in the statement.

Great Wall's monitor business contributes a growing share of the company's revenue. The company, which is losing market share in China's competitive computer market, sold more than 2 million computer monitors in 2006.

Listed in Singapore, TPV is now the world's largest computer screen maker by unit sales and supplies major computer manufacturers such as Dell Inc and Sony Corp. In 2006, TPV sold 43 million computer screens and LCD TVs, raking in $7.18 billion in total sales.

The deal still needs approval from Great Wall's shareholders and regulatory authorities, the company said.

"Great Wall may further acquire stakes in TPV and integrate the manufacturing and logistics operations of the two companies," said Gao Hao, analyst from Shanghai-based Shenyin Wanguo Securities, in a research note.

Shanghai-listed BOE Technology said in a statement the deal would increase its net profit significantly this year. The company, China's biggest maker of liquid crystal display panels, is now struggling to make a turnaround after chalking up a loss for two consecutive years.

BOE bought 26.23 percent of TPV for HK$1.05 billion last August and then sold 10.3 percent to Philips this January. The company said a few days later that it would sell its stake in the computer screen maker.

BOE has been struggling amid a worldwide slump in the flat-screen sector as prices of LCD TVs dropped 25 percent in the domestic market in the second half of last year, analysts said.

(China Daily May 16, 2007)

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