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‘Philips to offload remaining Signify stake’
Posted on Friday, 20 September 2019 13:27
Dutch conglomerate Philips is planning to divest its remaining 10.7 per cent shareholding in Signify, according to Reuters.

The news provider picked up on a statement issued by the Amsterdam-headquartered company, in which it said it intends to jettison the stake, comprising 13.80 million shares for EUR 25.90 per item of stock.

This equates to a total deal value of EUR 357.00 million.

Completion is expected to take place on 24th September.

Signify was spun out from Philips in 2016 and was known as Philips Lighting before changing its name in May 2018.

The company, which is publicly traded on Euronext, has continued to use the Philips brand for all of its products.

Signify claims to be the world leader in lighting for professionals, consumers and the Internet of Things, with 29,000 staff and a presence in more than 70 countries worldwide.

The firm recorded sales of EUR 2.96 billion in the first half of 2019, compared to the EUR 3.04 billion generated over the corresponding timeframe in the previous year.

Signify announced a stake purchase of its own just a few months ago; in late July, it agreed to pick up a 51.0 per cent shareholding in Chinese LED lamps manufacturer Zhejiang Klite Lighting Holdings for an undisclosed consideration.

This was preceded by May’s acquisition of Minnesota-based Once Innovations and Germany-headquartered iLOX for an unknown sum.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 222 deals targeting manufacturers of electric lighting equipment announced worldwide since the beginning of 2019.

Top spot has been taken by the battle to acquire Germany-based Osram Licht as both ams and a consortium of Bain and Carlyle have submitted approaches worth EUR 4.33 billion and EUR 4.00 billion, respectively.

Of the two bids, the Bain/Carlyle approach was previously recommended to shareholders, despite being lower, as it was considered more viable.

However, earlier this week, Osram’s managing and supervisory boards changed tack, giving the ams offer their seal of approval due to its financial attractiveness. Reports suggested that the two private equity companies could increase the value of their bid as a consequence.

© Zephus Ltd