Philips to spin off lighting branch in �historic� IPO

AFP, THE HAGUE: Electronics giant Philips announced yesterday it was floating its lighting arm on the stock market in a “historic” initial public offering, aiming to spin off at least a quarter of the division’s shares.
“The offering would consist of a sale of existing shares only held by Royal Philips, the current sole shareholder of Philips Lighting. The offering and listing, and their timing, are subject to, among other factors, market conditions,” the Amsterdam-based Philips said in a statement.
Philips in late 2014 announced it was selling off its core lighting business—a mainstay of its income for more than a century—to focus more on medical equipment.
But since then Philips said it has been examining its options, hesitating between a straight sale and an IPO in the Amsterdam stock exchange.
Philips said it would retain the majority stake in the lighting arm “with the aim to fully sell down over the next several years” as it shifts its focus to healthcare products.
“Today’s announcement is a historic one for Philips as we aim to separate our company into two market-leading companies focused on capturing opportunities in the health technology and connected LED lighting solutions markets respectively,” Philips chief executive Frans van Houten said in the statement.
“Philips Lighting is well-positioned as a stand-alone company,” he added.
After the announcement, shares in Philips fell by around 1.7 percent in mid-morning trade to around 23.50 euros ($27.20) per share on a sluggish Amsterdam stock exchange’s AEX index.

Philips to spin off lighting branch in �historic� IPO

AFP, THE HAGUE: Electronics giant Philips announced yesterday it was floating its lighting arm on the stock market in a historic initial public offering, aiming to spin off at least a quarter of the divisions shares. The offering would consist of a sale of existing shares only held by Royal Philips, the current sole shareholder of Philips Lighting. The offering and listing, and their timing, are subject to, among other factors, market conditions, the Amsterdam-based Philips said in a statement. Philips in late 2014 announced it was selling off its core lighting businessa mainstay of its income for more than a centuryto focus more on medical equipment. But since then Philips said it has been examining its options, hesitating between a straight sale and an IPO in the Amsterdam stock exchange. Philips said it would retain the majority stake in the lighting arm with the aim to fully sell down over the next several years as it shifts its focus to healthcare products. Todays announcement is a historic one for Philips as we aim to separate our company into two market-leading companies focused on capturing opportunities in the health technology and connected LED lighting solutions markets respectively, Philips chief executive Frans van Houten said in the statement. Philips Lighting is well-positioned as a stand-alone company, he added. After the announcement, shares in Philips fell by around 1.7 percent in mid-morning trade to around 23.50 euros ($27.20) per share on a sluggish Amsterdam stock exchanges AEX index.