UPDATE 1-Philips cuts stake in TPV below 3 percent

* Part of strategy to divest non-core assets

* TPV to issue shares, trading suspended

* Philips shares up 0.4 percent

(Adds detail)

AMSTERDAM/HONG KONG, Jan 29 (BestGrowthStock) – Philips Electronics
(PHG.AS: ) (PHG.N: ) said it would sell a 9.5 percent stake in TPV
Technology (0903.HK: ) which is also proposing a share issue,
diluting the Dutch company’s stake further.

Shares in TPV, a PC monitors and television technology
provider, were suspended in Hong Kong on Friday pending an
announcement about a proposed issue of new shares and a possible
mandatory conditional cash offer. [ID:nHKV000195]

As part of its strategy to sell non-core assets, Philips
said it would sell a majority of its stake in TPV to CEIEC
(H.K.) Ltd., a subsidiary of CEC/Great Wall, in an off-market
transaction.

Philips said it would sell a 9.47 percent stake in TPV,
reducing its stake to 2.99 percent, adding that the deal is
subject to the buyers obtaining applicable authorisations and
approvals from China government authorities.

Philips share were up 0.44 percent to 21.9 euros at 0850GMT,
in line with the Amsterdam blue chip index (.AEX: ), which was up
0.68 percent.

Philips said the sale is expected to have a break-even
impact on its results and provide it with net proceeds of about
95 million euros ($133.4 million) to be booked in the first
quarter.
TPV also proposes to issue new shares to a new shareholder
which will dilute Philips’ stake to 2.69 percent of TPV’s issued
share capital after the completion of both transactions.

A Philips spokesman did not provide further details of the
share issue.
($1=.7122 euros)

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(Reporting by Aaron Gray-Block and Jimmy Tsim; Editing by Mike
Nesbit)

UPDATE 1-Philips cuts stake in TPV below 3 percent