Philips Said Disappointed With Lighting Bids, Leaning To IPOby and
A final decision on whether to sell shares likely soon
Lighting division had $8.3 billion in annual revenue
Royal Philips NV is disappointed with bids for its lighting business and is leaning toward an initial public offering, according to people familiar with the matter.
The Dutch manufacturer could seek a valuation of about 5.5 billion euros ($6.3 billion) in a potential listing, said the people, asking not to be identified as the information is private. The company is likely to make a final decision on the IPO plan soon, the people said.
Chief Executive Officer Frans van Houten said last week that the company may opt for a listing of the business over a private sale due to an improvement in stock market conditions in the past couple of months. The division had $8.3 billion in annual sales and makes products such as street lights. Philips is also selling its lighting components business called Lumileds after a planned $2.8 billion sale to a consortium led by GO Scale Capital of China was blocked by a national security panel called the Committee on Foreign Investment in the United States, or CFIUS.
A representative for Philips declined to comment.
Philips shares fell 0.3 percent to 23.94 euros at 9:14 a.m. in Amsterdam, valuing the company at about 22.3 billion euros.