Philips Lighting needs change over time corporate name – Financieele Dagblad

Philips lighting division will go public under the corporate name of Philips Lighting. But as soon as the parent company Koninklijke Philips less than half of the shares in their possession, they should see a new company to be found within eighteen months. If Philips brand remains at least ten years at the lights, with the option to extend this period.

That said Eric Rondolat , CEO of Philips Lighting, Tuesday morning during a press conference in Amsterdam. There he gave together with Philips CEO Frans van Houten explained the decision to bring the light activities on the stock market this quarter. In the first instance Philips sells 25% of its shares Lighting, then gradually the part farther to get rid of. Philips CEO Van Houten said while no hurry. “But we do give the market clarity. Eventually we will reduce it. “

The brand name Philips, the light company, which will sit with its headquarters in Eindhoven, use much longer . Both among consumers and in the enterprise market brand represents a great value. So treasure the specialized agency Interbrand brands in the value of the Philips label in at $ 10 billion. It is an important part from the light activities, Van Houten stressed.

Ceo Philips Frans van Houten and Eric Rondolat, CEO of Philips Lighting, Tuesday after the publication in Amsterdam. (Photo: HH)

Philips with its light division against an unknown amount a license agreement agreed ten years with an extension option for another ten years. “It is in the spirit of this agreement to use the long-term brand,” said Rondolat. Van Houten said in the interest of both Philips companies that the brand name will be retained Lighting.

Philips gets rid of his light activities, because it entirely wants to focus on health technology. A portion of the proceeds, which for Philips Lighting in total are estimated at some € 5 billion, will use the group

for acquisitions in medical technology. In addition, existing Philips shareholders can also count on a section, for example through share buybacks. Furthermore, Philips uses the money for debt repayment.

Van Houten examined alongside the IPO last year, including the sale of its lighting division to private parties, both strategic buyers such as rival Osram and private equity houses. When the final choice, which was made Monday, Philips has looked at the valuation, the complexity of the transaction and whether Philips Lighting would get a good home. In all three cases the IPO proved a more attractive option, Van Houten said.

Nevertheless, the CEO would request not completely rule out a potential buyer still a knockout can bid for Philips Lighting. The Dutch company history this happened earlier in the afsplisting in 2007 from drug maker Organon from Akzo Nobel. The planned IPO was at the last minute canceled because US drug manufacturer Schering-Plough a miljardenbod misplayed the manufacturer of contraceptive pills from Oss. “The train has left the station for an IPO,” Van Houten said only when he was presented, or he a sale via a knockout bid now considered conceivable

striking detail is that Philips Commissioner Kees van Lede is feeding into the new supervisory board of Philips Lighting. Van Lede has gained the necessary experience splits. He was also involved in the break-up of the US food company Sara Lee, which Van Lede moved into the Dutch part DE Master Blenders 1753, which made an IPO four years ago. Since Van Lede could not prevent this coffee company already disappeared again after a short time of the Amsterdam stock exchange as a consortium of investors led by German billionaire Reimann family made a takeover bid. Lede was at that time already resigned as commissioner. He later distanced himself publicly from the affairs of DE.