IBM’s Chinese subsidiary has acquired a $15.8 million stake in Changhong Electric, China’s largest television set maker.
IBM Global Services China, the services and consulting arm of IBM China, has acquired a 1.56 percent stake in Sichuan Changhong Electric from its parent company and largest shareholder, Sichuan Changhong Group. Changhong Group transferred 29.76 million shares to IBM on Jan. 16, with the transaction valued at 53 cents per share. Based on that valuation, IBM’s stake in Changhong Electric is worth $15.8 million.
In addition to television sets, Changhong also produces air-conditioners and other electronics products, including MP3 players, set-top boxes and DVD players. The company is also an IBM customer, having adopted the Product Innovation Management model developed by IBM Global Services.