Philips: Lighting unit stake disposed

Philips yesterday agreed to sell a majority stake in its Lumileds lighting components unit to a group of investors as chief executive Frans van Houten focuses the Dutch company on the consumer healthcare market. The buyers led by GO Scale Capital will pay Philips $2.8 billion (R33.83bn) for the 80.1 percent stake. GO Scale is a fund sponsored by GSR Ventures, which has offices in Beijing, Hong Kong and Silicon Valley, and Oak Investment Partners. “It’s a good deal for Philips,” said ING Bank analyst Robin van den Broek. The winning bid was higher than expected as analysts valued the whole asset at about $2.7bn, he said. The sale marks a turning point for Philips, which has sold lighting products since its founding in 1891. – Bloomberg