| Published on: May 10, 2016
Regulatory financial guidelines presumably dictate the actions of Osram and Philips that are attempting to divest lighting businesses, but the Internet reveals more on the planned business moves.
Royal Philips, it appears, will spin out the Philips Lighting business unit as an initial public offering (IPO) with the parent company retaining a majority of the shares. Osram, meanwhile, continues to proffer its lamps and lighting business, now branded LEDVANCE, and has said that it will prepare a dedicated website for investors looking for more information on what the company has described as a carve-out of the lighting business that is due to occur by July 1.
The most recent activity with the two stalwarts of the lighting industry is especially frustrating to those of us in the media industry as the companies sought to follow global regulatory guidelines on business deals. Indeed, Royal Philips warned that US-based journalists were not allowed to report on its IPO plans despite the fact that the company circulated a press release in Europe on the planned divestiture.
Reuters, however, reported that Philips will sell at least 25% of the equity in the lighting business via an IPO. The news service said the company is valued at EUR 5 billion ($5.8 billion). Moreover, the new venture will continue to utilize the Philips Lighting brand. Indeed, as we reported last year, Royal Philips seems dedicated to maintaining an ownership interest in the lighting business even while separating its healthcare-focused business.
Osram may be a different story as it attempts to sell off its lamps business and the myriad factories around the globe that make legacy lamps. The company moved slower than competitors into the LED era, although Osram has made up ground under the leadership of Jes Munk Hansen.
Osram has reinforced the message that it will separate the LEDVANCE business unit by July 1. Moreover, the company said it would launch a secure website for investors that are following the progress of the separation process. Alas, the company did not reveal the website URL or the process that interested parties would follow to access what Osram said would be a resource for the latest information.
<Source : LEDs Magazine> |
