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Monday, May 16, 2016

Philips to launch sale of shares in lighting division

The Dutch electronics firm, Philips, aims to raise at least €694m (£547m) by selling a 25% stake in its lighting business on the stock market.


Philips chief executive Frans van Houten said the initial public offering (IPO) would enable the company to focus on its health technology business.

The Dutch firm said on Monday that it would offer 37.5 million shares priced between €18.50 and €22.50.
It values Philips Lighting, the world's biggest, at up to €3.38bn.
Final pricing is expected on May 26.

Philips Lighting shares will be listed on Amsterdam's Euronext stock exchange the following day.
Mr Van Houten said the decision to split the healthcare and consumer appliances group into two companies would enable Philips Lighting to capture opportunities in the LED lighting market.
"We believe Philips Lighting's future status as a listed entity would strengthen its position as a global market leader in connected LED lighting solutions," he said in a statement. "At the same time, Royal Philips will focus on the exciting and fast-growing health technology market."

Demand

Philips Lighting, which produces LED, halogen and fluorescent lamps, as well as electronic components and customised lighting systems, accounts for about a third of Philips' sales. Its products are sold in about 180 countries and it has manufacturing plants in more than 20 countries.

Worldwide lighting market sales reached €65.6bn euros in 2014 and are forecast to grow to approximately €79.8bn in 2020, driven by increasing demand for light as the global population grows and urbanises, as well as higher demand for more energy efficient lighting and digital lighting, Philips said.
Eric Rondolat, chief executive of Philips Lighting, called the planned IPO "a new chapter" in the history of the business.
"We are leading the attractive and growing lighting industry through the shift from conventional to LED lighting, as well as the expansion from individual products to connected lighting systems and services."

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