Philips Lighting, Eindhoven, The Netherlands, said it intends to repurchase 3.5 million of its own ordinary shares from its majority shareholder Royal Philips. Royal Philips announced its intention to offer approximately 22.25 million shares that it owns in Philips Lighting to institutional investors by means of an accelerated offering amounting to about 14.8% of Philips Lighting's issued share capital. Philips Lighting will not receive any proceeds from the sale.
Philips Lighting has committed to repurchase 3.5 million shares, up to a maximum of 25% of the total number of shares in the offering. The share repurchase is subject to the satisfaction or Philips Lighting's waiver of a number of conditions, including the successful completion of the offering and an offer price not exceeding today's closing price of the ordinary shares. The repurchase will be financed from the company's own funds and is in line with Philips Lighting's previous announcement that it will return up to EUR 300 million to its shareholders over the period 2017-2018, by participating in share disposals by its main shareholder. Philips Lighting intends to cancel these shares.
Philips Lighting release: Philips Lighting intends to repurchase 3.5 million shares from Royal Philips