PHILIPS has sold its 30 per cent stake in television joint venture TP Vision to majority owner TPV Technology as the Dutch tech firm moves to focus on its growing business in healthcare and lighting.
The deal will allow TPV to continue to sell TVs under the Philips brand with an annual royalty of 2.2 per cent of sales to Philips, and comes with a one-off payment of €50m (£41.3m) to Philips, similar to the terms under which the previous 70 per cent stake was sold to TPV.
Philips said the deal would allow it to focus on its more profitable ventures including energy saving light bulbs and healthcare.
“By giving TPV full control, they can drive synergies and act in a faster and more flexible way to changes in the market,” said Philips chief executive Frans van Houten.
“Together with TPV, we remain committed to making the TV business a success, with a range of innovative Philips-branded TVs.
“With this agreement, we are creating the right set-up for the business to be successful in the extremely dynamic and competitive TV market.”
The transfer of the stake is expected to close in the second half of 2014 subject to regulatory and shareholder approval.