Philips to Float Lighting Division in Amsterdam IPO
May 03 2016 - 10:51AM
Dow Jones News
By Razak Musah Baba
Royal Philips NV (PHG) said Tuesday it intends float its
lighting division in an initial public offering on Euronext
Amsterdam to help the company focus on its health care
business.
The Dutch electronics group said the offering would consist of a
sale of existing shares held only by Philips, the current sole
shareholder of Philips Lighting. It highlighted that the offering
and listing--and their timing--are subject to market conditions and
other factors. The company intends to sell at least 25% of the
Philips Lighting shares in the IPO, with the aim to fully sell down
over the next several years.
Philips had said in April it was more likely to shed its
lighting arm via an IPO, as the group struggled to find a buyer for
the business. The IPO could take place before the end of the second
quarter.
The Amsterdam-based company is separating its nearly
125-year-old lighting arm as part of a wider strategic overhaul to
concentrate on its more profitable and faster growing health care
business.
Philips said that tax charges related to the separation of the
lighting business contributed to a 63% drop in first-quarter profit
to 37 million euros. Adjusted earnings before interest, tax and
amortization rose 14% to 374 million euros ($430 million). Sales
grew 3% to EUR5.5 billion.
--Maarten van Tartwijk contributed to this article
-Write to Razak Musah Baba at razak.baba@wsj.com; Twitter:
@Raztweet
(END) Dow Jones Newswires
May 03, 2016 11:36 ET (15:36 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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