PHILPS split lighting business cited private group bidding

According to Reuters reported on 12, sources said the Royal PHILPS spin off lighting business plans to attract a number of private equity groups to compete.

This week there are private equity groups, including Bain, CVC, CD&R, KKR and Onex offer, the amount of about 2 billion 500 million euros (equivalent to about RMB 19 billion 62 million yuan) to the euro (equivalent to about RMB 22 billion 874 million yuan) between.

PHILPS as early as 123 years ago to start the production of lighting products in the global lighting market also has the highest market share, but in recent years, earnings are not satisfactory. Mainly because of the LED lighting market in China's manufacturers under the low price strategy is more intense competition, PHILPS's profit margins are more narrow. PHILPS has also said that the lighting component business is independent to better participate in market competition.

As early as July of this year, PHILPS announced that it will be merged into an independent Lumileds company and Automotive Lighting Department of the new company, PHILPS will continue to hold shares in the new company, the new company will be open to third party investors. Reuters said that PHILPS has authorized Morgan Stanley (Morgan Stanley) to find buyers for the new company, while PHILPS itself only intends to hold a minority stake.

Currently, PHILPS, Morgan Stanley and private equity groups have refused to comment on the matter.

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