Herbert Smith Freehills has advised Hong Kong-listed smart TV manufacturer TCL Multimedia Technology Holdings Limited on its strategic tie-up with Mainland online video operator LeTV.

The transaction included LeTV's purchase of 348.85 million shares in TCL Multimedia, a total investment amounting to HK$2.27 billion (US$230 million), and a shareholding percentage of around 20.1% after completion. The transaction is expected to close early next year.

TCL Multimedia is a major operating platform of Shenzhen-based TCL Corporation, one of the world's largest and leading consumer electronics conglomerates, while Shenzhen-listed LeTV is China's largest online content provider.

Beijing partner Tom Chau led the team advising TCL Multimedia. "China's industrial players like TCL Multimedia and LeTV have increasingly been pioneering the global transformation of the internet-based lifestyle of families worldwide by bringing in the 'living room ecosystem' which features smart TVs with user-friendly internet access and ample online content."

"This deal forges a major strategic alliance between China's leading smart TV manufacturer and its star online media provider, which is set to further promote this transformation," said Tom.

"We are very pleased that our China technology, media and telecoms (TMT) practice is keeping close pace with this trend in the industry through acting for our long-standing client TCL Multimedia. Our China TMT practice has advised on a number of similar alliances and inbound and outbound investments this year, where technology companies join forces with content and software producers to expand in this region – and beyond."

"In the case of this transaction, it was an intensively negotiated deal with tight deadlines, and also required a profound understanding of both PRC and global TMT markets."

Tom was assisted by Lawrence Wang and Isaac Chen (both senior associate) and Stephanie Chan (trainee solicitor). All are based in Beijing.

Herbert Smith Freehills' Greater China TMT practice advises a range of Chinese, Asian and international TMT clients on work ranging from technology regulation, licensing and contracts, through investments, M&A and operations, to complex disputes and arbitration. The team works closely with colleagues in Australia, Japan, Korea and Southeast Asia to provide a pan-Asia-Pacific service to clients.


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