Royal Philips (NYSE:PHG) said yesterday that it agreed to deal 17.1 million shares in Philips Lighting for €32 per share (about $37.90 apiece), for total proceeds of roughly $648 million (€547 million), cutting its holdings in its legacy business from 40.97% to 29.01%.
As part of the deal the Dutch healthcare conglomerate agreed to buy back and cancel 2.8 million Philips Lighting shares, raising its stake to 29.59%. The offering is slated to close Dec. 1.
Philips, which said it aims to sell its complete holdings in the lighting business over the next few years, no longer controls the operation; that means CEO Frans van Houten is slated to step down from Philips Lighting’s board at the end of the year.
Goldman Sachs, Merrill Lynch, Rabobank in cooperation with Kepler Cheuvreux and UBS acted as joint bookrunners for the deal, with Rothschild acting as financial adviser, the company said.
($1 = €0.844156)