Philips Moves Remaining 30% Stake in TP Vision to TPV
Royal Philips is transferring its remaining 30% stake in television joint-venture TP Vision to TPV technology, a fully-owned subsidiary of TPV Technology, to concentrate on its Healthcare, Consumer Lifestyle, and Lighting sectors. Following the signing of definitive agreements (which is expected to be concluded in the later half of 2014), TPV will fully own TP Vision, which will enable further integration with TPV's TV business.
“With this agreement, we are creating the right set-up for the business to be successful in the extremely dynamic and competitive TV market,” said Philips CEO, Frans van Houten.
In addition to having full control, TPV will collect a single €50 million payment. The brand license agreement between Philips and TP Vision will remain intact, as TP Vision will pay Philips annual royalties of 2.2% of sales, with the minimum annual royalty being reduced to €40 million from €50 million.
Source: Advanced Television.