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Philips to list lighting division after finding no buyer
[AMSTERDAM] Royal Philips NV said it will list its lighting division after searching for a buyer for the business for the past half year.
Philips plans to sell at least 25 per cent of shares of the unit in Amsterdam, the company said in a statement on Tuesday. The company aims to sell the remaining shares in the coming years.
Eric Rondolat will remain Chief Executive Officer of the unit with Rene van Schooten as Chief Financial Officer.
Philips Chief Executive Officer Frans van Houten is shifting the company away from its lighting heritage, which dates to 1891 when Frederik Philips and his son started selling incandescent lamps.
Mr van Houten is focusing on the global health-care market with equipment that allows hospitals to analyze clinical data, and patients to monitor health and nutrition on smartphones.
The lighting division reported 547 million euros (S$848.33 million) in profit in 2015 and had 7.47 billion euros in sales, Philips said Tuesday.
Philips is targeting a annual dividend for the lighting unit of 40 to 50 per cent of its continuing net income to be paid out in cash, with the first payment expected in 2017.