14 DAY TRIAL // Philips Electronics recently announced that the manufacturer intends to put on sale most of the shares of its semiconductors division, in the course of the second half of 2006, informs X-bit Labs.
Consequently, the company will initiate a public offering (IPO) of its shares, which will be purchased by several financial investors (the names weren't disclosed). Philips representatives added that the company intends to focus on other industry consolidation opportunities, after evaluating them. The officials preferred not to reveal other details regarding the market segments they are referring to.
"In the course of these last few months hundreds of Philips people have been working long hours on issues relating to the disentanglement of Semiconductors, while a small top team has worked on the pursuit of the different strategic alternatives. Both projects are well on track and in the process we have been able to define more clearly the next steps we will make and the outcome that will result in, both for Philips as well as Semiconductors. This has led us to the decision to speed up the transformation of our Semiconductors division into a standalone company that is separate from Philips and will have a majority third parties ownership," stated Gerard Kleisterlee, chief executive officer of Philips.
Moreover, the representatives added that this decision is based on previous talks with several investors regarding this matter, both parts having agreed to abandon the semiconductor business.
"The future deconsolidation of semiconductors is a further step for Philips in moving away from a focus on high volume electronics and implementing a strategy to build a Healthcare, Lifestyle and Technology company with a strong market focus around the brand promise of Sense and Simplicity," Kleisterlee added.
It is said that the new semiconductors oriented company will continue the previous business strategy regarding product development. Furthermore, the new manufacturer intends to introduce new items in its portfolio and, at the same time, gain market share in several economic segments such as mobile and personal, home, automotive and identification and multi market semiconductors.
Philips officials stated that the process will proceed with further talks with workers councils regarding the future steps, which will be made in order to complete the disentanglement by the end of the third quarter and, of course, generate a perfectly independent semiconductor oriented company with majority third party shareholding before the end of the year 2006. The name of the firm will be made public only after the process will be completed and when the new company will be listed separately at stock exchange.