PHILPS does not sell lighting business, to raise funds from the market to go IPO

Holland Dachang Royal PHILPS (Royal PhilipsNV) on April 25th announced that since 2016, the stock market upturn, raising market status has improved, so PHILPS change tendency through IPO to handle its lighting business, rather than through the non public sale to the vendor specific form. In other words, PHILPS decided not to sell a large increase in the probability of lighting business, I hope the parties through the stock market investors to generate higher market value for PHILPS's lighting business.

PHILPS side said that although there are still different vendors for PHILPS lighting business proposal proposal, but the company will also plan IPO related matters. PHILPS also revealed that regardless of the outcome, the short term, will be announced in the near future.

But investors for the new PHILPS move seems ungrateful, PHILPS's share price fell more than 4% on the same day. After all, if we want to make PHILPS's IPO lighting business, the fastest also need to spend a year or even more time to make the lighting business listing, the PHILPS stock investors have not sold this year, PHILPS lighting business immediately to get the benefits of adding value.

From another point of view, if PHILPS decided not to sell lighting business, to go IPO, then put forward many proposals before the price, whether including China, Asian manufacturers, manufacturers or other areas, want to get the PHILPS lighting business this important key assets, will be from the other way to begin, the acquisition of shares in the open market, which could meet the current setting strategy of PHILPS.

In January 2016, PHILPS's LED business Lumileds, China investment team was going to PHILPS for $2 billion 800 million to sell about 80% stake to Jinsha River capital investment area, but the United States is responsible for the foreign investment review board of the national security factors based on LED business in the United States did not agree with the sale of PHILPS's, so it was decided to suspend the transaction PHILPS, is to find other buyers.

PHILPS had to sell off the lighting business, is to concentrate resources in the health care group, in the field of high profit, key business battlefield is the company and SIEMENS group, the United States GE company competition.

PHILPS also said that the tax related expenses arising from the split lighting business, will make the company affected by the profit in the first quarter of 2016, estimated net profit is 37 million euros, compared with the same period in 2015 declined 63%. Revenue declined slightly by 3%, still reaching Euro 5 billion 500 million.

LEDinside observed that if PHILPS does not sell directly to the lighting business, and probably other market considerations, including the traditional lighting business profit, lighting system and integration of the project's profit form, PHILPS in the application of new technology, lighting technology, LED component development there are still more follow-up arrangements, but probably not only the stock market took a turn for the better. Not so easy because raising private sale of lighting such.

For more information about LED, please click on LED network or pay attention to WeChat public account (cnledw2013).