Philips to Float Lighting Division in Amsterdam IPO

   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 [e-mail]; Twitter: @Raztweet

(END) Dow Jones Newswires

May 03, 2016 11:36 ET (15:36 GMT)

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