It is becoming very likely that Philips Lighting will head to the stock exchange as an independent company. Philips wants to split off the lighting division and focus entirely on health technology itself, but a regular sale to another company is also still an option.
Costs weigh down profit
Philips may conclude to get rid of the division and to sell it to a competitor or an investor, but it seems more likely it will go for an IPO. Nevertheless, the company is currently examining a number of bids for its Philips Lightning division, focusing on whether the competition authority may oppose a particular sale. Philips still has not found a new buyer for Lumileds, after a deal with a Chinese investor fell through as the American Bureau Of Competition blocked the move.
The costs to split off Philips Lightning do weigh on Philips’ profit numbers as the first quarter profit dropped from 100 million to 37 million euro, despite a 3 % turnover increase to 5.5 billion euro. EBITDA reached 7 % higher than the year before, namely 374 million euro.
