FRANKFURT, July 25 Philips has picked
Morgan Stanley to organise the sale of a stake in its
lighting components business, which it is carving out as part of
a strategic reshuffling, three people familiar with the matter
The Dutch company said last month that it would set up the
unit by merging its light-emitting diodes (LEDs) business
Lumileds and its automotive lighting businesses, which have
combined sales of about $1.8 billion.
Philips has already received interest from private equity
players. The process, which is due to kick off after the summer,
may or may not lead to a stake sale to financial investors, the
people said, adding that all options are currently still on the
table including a stock market listing.
Investors such as KKR, Advent, EQT, CVC, Cinven, Clayton
Dubilier & Rice are expected to bid for the asset, they said.
Profit figures of the unit set to be spun off have not been
made public but one of the sources indicated that the margin of
earnings before interest, taxes, depreciation and amortization
(EBITDA) over sales was roughly 20 percent.
Philips, Morgan Stanley and the potential bidders declined
($1 = 0.7436 Euros)
(Reporting by Arno Schuetze and Anjuli Davies; Editing by