By Ian Walker
Dutch electronics group Koninklijke Philips N.V. on Thursday
said it plans to spin off its lighting business in an initial
public offering next year.
The announcement comes after the company said in September that
it would split itself into two companies spin off its iconic
lighting business. The separation is the latest in a series of
restructuring moves by the Dutch conglomerate and came after a
number of profit warnings and criticism that its cumbersome
corporate structure is slowing it down.
Philips, whose products range from shavers and coffee machines
to hospital scanners, said Thursday that the lighting business
would be moved into a separate holding company structure,
comprising all activities, related assets and liabilities.
While the company said it is also reviewing other options for
the lighting operations, including a private sale, it currently
expected an IPO to take place in the first half of 2016, subject to
market conditions and other relevant circumstances.
The lighting business being separated won't include the
company's automotive lighting and lumileds--LED
components--operations, which will be sold separately. Philips said
it was actively discussing the sale of the businesses with
potential buyers and that it expects a deal to be completed in the
first half of 2015.
Shareholders will vote on the proposed separation at an annual
general meeting to be held on May 7.
Write to Ian Walker at ian.walker@wsj.com
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