THE HAGUE - Dutch electronics giant Philips (IW 1000/137) on Tuesday said it was selling a majority stake in its LED and car lighting arm to a consortium led by China and US-based GO Scale Capital investment fund in a deal worth $2.8 bn.
The deal is part of Philips' broader streamlining move which will eventually see the 120-year-old company transform into a specialist healthcare-lifestyle manufacturer.
"Philips today announced that it has signed an agreement with a consortium led by GO Scale Capital through which they will acquire an 80.1% interest in Philips' combined LED components and automotive lighting business," the Amsterdam-based group said.
"Philips expects to receive cash proceeds, before tax and transaction related costs, of approximately USD 2.8 billion (2.5 billion euros)," it said in a statement, with up to another $100 million possible in deferred contingent payments.
Its current investments include US-based Boston Power, which makes electric vehicle batteries and China-based Xin Da Yang which produces electric vehicles.
"GO Scale Capital will focus on expanding Lumileds' opportunities by investing in its global centers of operation and in the fast growing general lighting and automotive industries," GO Scale Capital chairman Sonny Wu said in Tuesday's statement.
"Together with a customer base including the likes of BMW (IW 1000/31), Volkswagen (IW 1000/6) and Audi, we expect to see significant growth and unparalleled inroads into new opportunities such as electric vehicles," Wu said.
Copyright Agence France-Presse, 2015
