Philips lowers its stake in LG.Philips LCD to 19.9%
Amsterdam, The Netherlands – Royal Philips Electronics (AEX: PHI, NYSE: PHG) today announced it has sold 46.4 million shares of common stock in LG.Philips LCD Co., Ltd. (“LPL”) (NYSE: LPL, KRX: 034220) to financial institutions in a capital markets transaction. This transaction represents 13.0% of LPL’s issued share capital and reduces Philips’ holding to 19.9%.
The transaction, which closed today, will provide Philips with net proceeds of approximately EUR 1.55 billion, and is expected to result in a non-taxable gain of approximately EUR 500 million in the fourth quarter of 2007. As part of the transaction, Philips may decide to sell additional shares to the same financial institutions later today to meet additional demand, if any.
This transaction is in line with Philips’ communicated strategy to further reduce its holding in LPL in a structured and responsible manner, as the company has already done with other financial holdings.
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