TPV Technology, the world’s biggest contract manufacturer of computer monitors, was suspended from trading in Hong Kong and Singapore pending an announcement of a plan to issue new shares and a possible buyout offer.

 

TPV applied for the trading halt ahead of a disclosure “in relation to a proposed issue of new shares and possible mandatory conditional cash offer,” it said in a filing to the Hong Kong stock exchange today. The company received approaches from new investors, Director Eddie Chen said by phone today.

 

China Electronics Corp., TPV’s biggest shareholder, may be interested in adding to its stake in the monitor maker as demand for computer products increases, CIMB-GK Pte analyst Jonathan Ng said. Beijing-based China Electronics raised its holding in TPV to 27% in July, following a series of share purchases that began in 2007, according to Hong Kong stock exchange data.

 

“The fourth quarter turned out to be quite good for the industry as a whole, so the company should also do quite well,” said Ng, who rates TPV shares “outperform.” China Electronics also plans to expand its investment in production of liquid- crystal-display panels, a line of business that would integrate with TPV’s monitor operations, the Singapore-based analyst said.

 

Hong Kong listing rules require investors to make general offers to buy out other company shareholders when their holdings exceed 30%.

 

Phone calls to China Electronics’ general line in Beijing weren’t immediately answered.

TPV rose 1.7% to HK$4.88 in Hong Kong yesterday, while the company’s Singapore-listed shares last changed hands at 83 cents on Jan. 27, according to Bloomberg data. The monitor maker has a market capitalization of HK$10.3 billion ($1.87 billion).

 

TPV, part-owned by Royal Philips Electronics NV of the Netherlands and Chi Mei Optoelectronics Corp., almost doubled in Hong Kong trading last year as the global economic recovery helped boost sales of personal computers. The company is also increasing investment in production of LCD televisions to meet rising demand for the products.

 

Chi Mei, Taiwan’s second-biggest LCD maker, last year said it will merge with Innolux Display Co., named by Citigroup Inc. as TPV’s biggest competitor in the monitor market. Chi Mei plans to keep its stake in TPV, said Chen, who is also spokesman for the Taiwanese shareholder. Chi Mei owns a 7.1% of the company’s shares, according to Bloomberg data.

 

China Great Wall Computer Shenzhen Co., controlled by China Electronics, paid about HK$1.1 billion in May 2007 to acquire about 10% of TPV. China Electronics raised its stake seven times in 2009, according to data from the Hong Kong stock exchange.