SAN JOSE, Calif. -- Royal Philips Electronics has completed the sale of 800 million common shares in foundry provider Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC), in a transaction valued at approximately $1.5 billion.
Philips remains one of TSMC's largest shareholder. This stock sale is the third step in a multi-phased plan to facilitate an orderly exit by Philips from its shareholding in TSMC, as announced by the companies on March 9, 2007.
This plan aims to reduce Philips' holding in TSMC to zero before the end of 2010. Last year, Philips also exited the semiconductor business, by spinning off its chip unit.
Following completion of this sale, Philips holds approximately 1.3 billion TSMC shares. This represents approximately 5.0 percent of TSMC's issued shares. This total stake is worth approximately 1.7 billion euros ($2.5 billion) at current market prices for TSMC shares.
The sale of these shares will provide Philips with proceeds of approximately 980 million euros ($1.43 billion), and will result in a non-taxable net gain of approximately 530 million euros ($773.5 million) in Philips' financial results for the fourth quarter of 2007.