TCL to sell PC stake

THE country's biggest listed electronics maker is to sell its loss-making computer business to an overseas investor.

The Shenzhen-listed TCL Corp said yesterday it would dispose of its PC operations with the sale of an 82-percent stake in the unit.

Shares of TCL stopped trading yesterday to await a further announcement.

TCL's computer unit lost 67.8 million yuan (US$8.9 million) last year on sales of 2.14 billion yuan, the Huizhou-based company told the Shenzhen Stock Exchange earlier.

The move follows Lenovo's acquisition of IBM's PC business and Acer's purchase of Gateway.

TCL made a profit in the first half of the year, helped by cost cutting. Its net profit was 45.1 million yuan compared with a net loss of 746.4 million yuan a year earlier.

After the sale of the PC unit, TCL will focus on the TV and telephone business. The company recently announced a deal to sell the BlackBerry phone in China next year.