TCL revises share sale target downward

TCL Corp, China’s largest consumer electronics maker, has cut the target for its upcoming share sale by US$44 million, saying that it already had enough cash for a planned rights issue of its television arm, TCL Multimedia, the South China Morning Post reported. In stating its decision to cancel part of its fund-raising plan, the Shenzhen-listed company cited improved performance since the announcement of the sale. Shares in TCL Corp have dropped by more than 30% since it initially announced the share sale in July, however. The original plan to raise US$248 million by selling up to 440.62 million new shares has been scaled back to US$204 million. The shares will be sold to company chairman Li Dongsheng and 10 institutional investors, in order to increase production of large-screen LCD televisions. TCL Corp will raise its stake in Hong Kong-listed TCL Multimedia from 41.4% to 67.9%.