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Philips sells majority interest in lightning business to GO Scale Capital

Xinhua, March 31, 2015 Adjust font size:

Dutch electronic giant Philips signed an agreement with GO Scale Capital for the sale of 80.1 percent interest in Philips' combined LED components and automotive lighting businesses to the Chinese-American investment company, Philips announced on Tuesday.

Philips retained the remaining 19.9 percent interest in the company, which was valued at 3.3 billion U.S. dollars in the deal. Philips expects to receive cash proceeds, before tax and transaction-related costs, of approximately 2.8 billion U.S. dollars and a deferred contingent payment of up to 100 million U.S. dollars.

GO Scale Capital is an investment fund sponsored by China-based GSR Ventures and U.S. based Oak Investment Partners.

Philips' Lumileds is a major supplier of lighting components to the general illumination, automotive and consumer electronics markets. Following the transaction, the new company will continue under the name Lumileds.

The transaction is expected to be completed in the third quarter of 2015.

Following the deal, Philips Lighting will remain focused on the growing lighting solutions markets. In September last year, Philips decided to split into two separate independent companies, one for lighting solutions and one combining health care and consumer lifestyle. This separation is still in progress and will take approximately 12 to 18 months. Endit