Dutch technology company Philips announced
Tuesday it will sell “at least 25 percent” of its lighting business on
the stock market to focus on its medical equipment division. The
company’s lighting division is the world’s largest manufacturer of
lights and in 2015, had sales of over $8.5 billion.
The company decided to take the initial public
offering (IPO) route after it failed to find a buyer despite searching
for months. Philips had first announced its intention to split off its
lighting business as a standalone entity in September 2014, and had
announced IPO plans for it in March 2015.
The public shares of the currently privately
held company — Philips holds all shares of the lighting business at the
moment — will be listed on the Euronext Amsterdam exchange. After the
initial tranche of at least 25 percent shares being offered, Philips
aims to “fully sell down over the next several years” as it focuses on
its healthcare business, according to a statement.
Philips CEO Frans van Houten said in the
statement: “We believe Philips Lighting’s future status as a listed
entity will strengthen its position as a global market leader in
connected LED lighting solutions. At the same time, Royal Philips will
focus on the exciting and fast growing health technology market.”
Philips has also been in talks with other
companies, including a private equity firm and a Chinese group, for a
possible sale of the lighting business, but reportedly turned down
offers due to lower-than-expected bids.
Analysts value Philips’ lighting unit at between $5.8 billion and $6.4 billion.
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