Philips to Sell Lumileds to Apollo at Discounted $2 Billion

  • CEO says value agreed with private equity firm is setback
  • Philips confident deal will go through this time around
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Royal Philips NV agreed to sell a majority stake in its lighting components unit to Apollo Global Management LLC in a cut-price deal valued at $2 billion after a U.S. national security panel blocked a more lucrative transaction with a Chinese buyer almost a year ago.

Philips will receive cash proceeds of $1.5 billion for Lumileds and participating preferred equity for the 80 percent stake, the Amsterdam-based company said in a statement Monday. Philips will retain the remaining shares.