(Yicai Global) Jan. 7 -- Handset and wearables giant Xiaomi has acquired a small stake in electrical appliances maker TCL as the two Chinese firms agreed to work together on developing smart products.
Xiaomi had bought 0.48 percent, or nearly 65.2 million shares, from the secondary market by Jan. 4, Guangdong province-based TCL said in a statement yesterday. Xiaomi spent CNY150 million (USD21.8 million) based on a price range of CNY2.45 (40 US cents) to CNY2.58.
The two also signed an agreement to invest in and research next-generation intelligent products to improve the global user experience, TCL said. Xiaomi recognizes TCL's core competitiveness and industry status, the statement added, citing a letter the Beijing-based smartphone maker sent to TCL.
Thanks to the partnership, TCL's display products will no longer depend heavily on its television business, helping to reduce risks, an analyst said. TCL may secure Xiaomi's supplies of raw materials for its home appliances and cellphones, he added.
Shares of TCL [SHE:000100] gained 3.5 percent to CNY2.66 (39 US cents) today, while those of Xiaomi [HKG:1810] edged up 0.3 percent to HKD12 (USD1.53).
Editor: Emmi Laine