By Renée Francoeur
UPDATED May 12, 2015 (orignally posted September 23, 2014) – The separation of the Lighting business from Royal Philips has been approved at the Annual General Meeting of Shareholders in the Netherlands.
“[The] time is right to take the next strategic step for Philips, as we continue on our transformation,” said Frans van Houten, Royal Philips CEO, as he explained the company is combining its healthcare and consumer lifestyle businesses into one company.
The Lighting solutions business, says Philips, will be better positioned to capitalize on “the fundamental changes taking place in the lighting industry, in which the value is shifting from individual products to systems and services”.
The legal transition will take at least until the end of 2015, in order to be ready for the separation, which is currently intended to be effectuated through an IPO in the first half of 2016.
“We welcome the decision by the AGM to approve the separation of our Lighting business from Royal Philips and I fully appreciate the historic significance,” said van Houten. “Both our multi-billion euro HealthTech and Lighting Solutions businesses have the right fundamentals for profitable growth in their fields.”
The AGM also approved the proposal to re-appoint van Houten, Ron Wirahadiraksa and Pieter Nota as members of the board of management for a term of four years.