Hong Kong Media stated that TCL Multimedia announced that its wholly-owned subsidiary TCL Argentina had entered into a termination agreement for the acquisition of Argentinean Electric Appliance Company on May 28, and entered into a new subscription agreement with the counterparty party through another wholly-owned subsidiary TCL Netherlands.
According to a report by the Hong Kong Economic News Agency on May 30, according to the new subscription agreement, among other things, TCL Netherlands had to subscribe for new shares in the joint venture company, resulting in TCL Netherlands and RV Tech respectively having RVF issued after the close of delivery. 15% and 85% of the shares; and TCL Netherlands and JWG will own 15% and 85% of the shares already issued by Sontec.
In addition, TCL Netherlands will grant call options to RV Holdings, which will have the right to request TCL Netherlands to sell RV Holdings’ redemption shares to them.
RVF and Sontec are engaged in the production and distribution of electronic consumer products and household appliances in Aconting. Its products include televisions, stereos, air conditioners, refrigerators, mobile phones, tablet computers, microwave ovens and electronic accessories.
According to the News Network-Lee Hai Kee Reporter, TCL Multimedia announced that due to the implementation of trade protectionism in Argentina, foreign consumer electronics products and household appliances brands are required to pay large tax levy. Therefore, compared with local brands, foreign brands The market share is relatively small.
Prior to the conclusion of the old subscription agreement, the Group mainly carried out business operations in Argentina through its strategic partners and did not establish any of its group subsidiaries or joint ventures locally. However, this approach hinders the Group’s business engagement and potential growth in Argentina. By entering into the old subscription agreement, the group has changed its mode of participation in the Argentinean market from a relatively passive strategic partner to become a shareholder in the joint venture company. The arrangement will increase the Group’s visibility in the Argentinean market and let it The group more directly enjoys the potential growth benefits.