Millennium Post

Philips to sell 80.1% stake in LED parts, auto lighting biz for $2.8 bn

The transaction pegs the business at an enterprise value of approximately $3.3 billion. A new company will be formed under the name Lumileds, led by CEO Pierre-Yves Lesaicherre for the business, the company said in a statement. "Philips expects to receive cash proceeds, before tax and transaction related costs, of approximately $2.8 billion and a deferred contingent payment of up to $100 million," it added. The company further said its lighting solutions business will remain an important customer of Lumileds and will continue the existing innovation and supply partnership.

"The transaction is expected to be completed in the third quarter of 2015, subject to closing conditions, including customary regulatory approvals," it said. Commenting on the development, Royal Philips CEO Frans van Houten said: "Philips is very positive about this transaction with GO Scale Capital as its principals are long-term, growth-oriented investors with a track record of building and expanding technology companies."

GO Scale Capital is a new investment fund sponsored by GSR Ventures and Oak Investment Partners. The consortium partners are Asia Pacific Resource Development, Nanchang Industrial Group and GSR Capital.
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