Aug 16 2005
Royal Philips Electronics has signed an agreement with Agilent Technologies Inc. through which Philips will acquire Agilent's shareholding [approximately 47%] in Lumileds Lighting Int. B.V. for approximately US$ 950 million (EUR 765 million), to be paid in cash upon completion. Completion of the transaction will result in Philips having a controlling ownership in Lumileds and holding 96.5% of Lumileds' issued and outstanding share capital. The remaining 3.5% will be owned by an employee trust company. Through this acquisition, Philips will expand its leadership position in the lighting arena for years to come.
In addition to expanding the company's lighting activities, Philips' Board of Management today adopted a new share repurchase program of up to 63 million shares for a maximum amount of EUR 1.5 billion to be executed within the next 12 months. Subject to approval by the Annual General Meeting of Shareholders, to be held in March 2006, all shares purchased under this program will be cancelled, resulting in a reduction in Philips' outstanding share capital. In June 2005, Philips completed a previous six-month share repurchase program in which EUR 500 million in shares were purchased for cancellation. In commenting on these transactions, Gerard Kleisterlee, President and CEO of Royal Philips Electronics said, "While we remain focused on expanding the company through value-creating acquisitions in our Medical Systems, Domestic Appliances and Personal Care and in our Lighting businesses, we'll continue managing our capital efficiently to create optimum value for our shareholders."
Light Emitting Diodes (LEDs) are widely viewed as tomorrow's lighting technology. Compared to traditional lighting sources, LEDs have clear advantages in terms of lifespan, energy-efficiency, durability, color saturation, environmental-friendliness and safety, and open up a range of new applications, representing a huge market potential for Philips. "This agreement underscores Philips' commitment to creating value through growth and innovation in emerging technologies," said Theo van Deursen, Chief Executive Officer of Philips Lighting. "Through this acquisition, we will be fully engaged in all stages and areas of the LED business value chain and uniquely positioned to further strengthen our leadership in this new and exciting market," Mr. van Deursen added.
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