The story appears on

Page A11

April 2, 2015

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » IT

Philips’ deal may turn the light off

DUTCH electronics giant Philips is selling a majority stake in its LED and car lighting arm to a group led by China and US-based GO Scale Capital investment fund in a US$2.8 billion deal.

The deal is part of Philips’ broader streamlining move which will eventually see the 120-year-old company transform into a specialist healthcare-lifestyle manufacturer.

“Philips today announced that it has signed an agreement with a consortium led by GO Scale Capital through which they will acquire an 80.1 percent interest in Philips’ combined LED components and automotive lighting business,” the Amsterdam-based group said on Tuesday.

“Philips expects to receive cash proceeds, before tax and transaction related costs, of approximately US$2.8 billion,” it said in a statement, with up to another US$100 million possible in deferred contingent payments.

After the sale, to be completed in the third quarter of this year, Philips will retain a 19.9 percent share in the business, it added.

Philips last year said it would split in two, separating its healthcare-lifestyle arm from its historic lighting section in a move to streamline operations.

The split is set to be completed next year, with analysts predicting that Philips could eventually sell off lighting, one of its core businesses.




 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend