PHILPS will be ahead of the end of the year before the transfer of semiconductor business

According to foreign media reports, the Royal Dutch Philips Electronics Ltd said on Wednesday, will be the end of the year will transfer its semiconductor business or market, but PHILPS will in the semiconductor company in the future holds a minority stake.

As early as last December, PHILPS said it would divest its semiconductor business PHILPS semiconductor, the company will use nine months to find a variety of possible opportunities. Now, PHILPS has made a decision after careful consideration, the transfer of equity to financial institutions, means the transfer of private or the first listed company.

Media analysts believe that PHILPS decided to divest the semiconductor business in advance is a good news for the market, which shows that PHILPS's financial results will not fluctuate as in the past. On Wednesday, PHILPS's shares rose three percent. A PHILPS spokesman told the press: "at this stage, the initial public offering of listed companies or financial strategy is an ideal choice for investors."

PHILPS semiconductor last year's annual sales revenue of up to four billion and six hundred million euros (about $five billion and eight hundred million). Financial analysts believe that, taking into account other debt and asset factors, the market value of PHILPS semiconductor business in about five billion euros to between six billion euros. Just a few months ago, the semiconductor industry market is warming, many analysts therefore PHILPS semiconductor valuation from six billion euros to between eight billion euros.

Analysts also pointed out that PHILPS semiconductor company has many potential buyers, such as Fiskaa M semiconductor, active in the United States consumer electronics and communications chips, Germany's DRAM and flash memory manufacturers and Infineon Corporation, stmicroelectronics.

It is reported that PHILPS will be a new name for the semiconductor business, will be announced in the next two or three months.

At present, PHILPS semiconductor company contributed 1/6 of the sales revenue of PHILPS group, however, compared with other electrical appliances, lighting and medical equipment business, the semiconductor business needs capital spending even larger, and the profit rate is relatively low. In addition, PHILPS company has been positioned in a more electronic company facing the market and consumption in the market development strategy, semiconductor company as a technology intensive upstream industry, PHILPS has not meet the new location.

At present, PHILPS is the world's largest lighting equipment manufacturers, the world's third largest medical equipment manufacturers, Europe's largest consumer electronics manufacturers and Europe's top third semiconductor manufacturers.