TCL to sell 49 percent stake of cellphone division in restructuring move

TCL Corp plans to sell a 49 percent stake in its subsidiary TCL Communication Technology for HK$490 million ($62.8 million) as the Chinese electronics maker aims to restructure its stagnant smartphone business.

The company will sell an 18 percent stake to Unisplendour Technology Venture Capital Ltd, 18 percent to Oriente Grande Investment Fund LP and 13 percent to Vivid Victory Developments Ltd, according to an announcement issued by TCL on Monday night.

The move is to introduce outside investors who possess industrial background and business resources to optimize the ownership structure of TCL Communication and accelerate its transformation, according to the company.