Philips is to sell off a majority stake in its
semiconductor business to private investors for
£4.5bn.
A consortium, consisting of Kohlberg Kravis Roberts & Co,
Silver Lake Partners and AlpInvest Partners, is acquiring an 80.1%
stake in the business.
Philips Semiconductors supplies chip systems for mobile phones,
consumer electronics, digital displays, contactless payment and
connectivity systems, in-car entertainment and networking
systems.
It has around 37,000 employees worldwide, and had sales of
£3.1bn in 2005.
Gerard Kleisterlee, group chief executive officer of Philips,
said, “As a standalone company, the semiconductors business will
have every opportunity to realise its full potential, and we are
very pleased to have found strong partners that share our belief.
As a business partner, we will remain strongly committed to the
future success of the business.”
Philips will retain the remaining 19.9% in the business. The
transaction will put the “enterprise value” for Philips
Semiconductors at around £5.6bn, said Philips.
Philips estimates it will receive cash proceeds after tax and
transaction related costs of around £4.3bn euros.
The transaction is expected to be completed in the fourth
quarter of this year.
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