Philips shareholders approve lighting biz spinout
Royal Philips (NYSE:PHG) said last week that its shareholders approved the spinout of its legacy lighting business as a stand-alone, publicly traded company.
The Dutch conglomerate is looking to shed the 123-year-old lighting business, which is said to be worth some €2.5 billion ($2.6 billion), and is also planning to merge its healthcare and consumer segments.
Sign up to get our free newsletters delivered straight to your inbox
“We welcome the decision by the [annual general meeting] to approve the separation of our lighting business from Royal Philips and I fully appreciate the historic significance of today’s meeting,” CEO Frans van Houten said in prepared remarks. “Both our multi-billion-euro healthtech and lighting solutions businesses have the right fundamentals for profitable growth in their fields.”
Philips said it expects the transition to a separate legal structure for the lighting operation will take “at least” until the end of this year. The company said it’s planning an initial public offering for the spinout in the 1st half of 2016.
Philips to carve out lighting biz, merge healthcare & consumer units
Philips’ Q4 profits plunge on Cleveland plant closing